Kodiak Gas Services, Inc. (KGS)

Inventory turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
Cost of revenue (ttm)	US$ in thousands	771,782	787,128	718,648	668,147	569,694	456,078	397,326	324,732	290,351	277,345	267,351
Inventory	US$ in thousands	101,004	99,802	103,341	118,085	119,649	82,906	76,238	70,606	76,813	75,024	72,155
Inventory turnover		7.64	7.89	6.95	5.66	4.76	5.50	5.21	4.60	3.78	3.70	3.71

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $771,782K ÷ $101,004K
= 7.64

The inventory turnover ratio of Kodiak Gas Services, Inc. demonstrates a notable upward trend over the observed period. At the end of 2022, the ratio was recorded at 3.71, indicating that the company's inventory was sold and replaced approximately 3.7 times within that year. This figure remained relatively stable in the first quarter of 2023 at 3.70 and slightly increased to 3.78 by the end of the second quarter.

In the third quarter of 2023, the ratio experienced a modest increase to 4.60, suggesting improved efficiency in inventory management and faster inventory turnover. This upward trajectory continued into the end of 2023 with the ratio reaching 5.21, reflecting a further enhancement in inventory utilization.

The upward momentum persisted into 2024, with the ratio climbing to 5.50 in the first quarter and then declining slightly to 4.76 in the second quarter. However, it rebounded strongly in the third quarter to 5.66, indicating continued improvements in inventory management practices and possibly higher sales efficiency.

By the end of 2024, the ratio surged to 6.95, suggesting a significantly increased velocity in inventory turnover, which could imply either rapid sales, improved supply chain efficiencies, or a strategic reduction in inventory holdings. The first two quarters of 2025 saw the ratios further elevate to 7.89 and then slightly decline to 7.64, maintaining a high level of inventory liquidit y.

Overall, the trend indicates a consistent improvement in inventory management efficiency over the period, with the ratio nearly doubling from late 2022 to mid-2025. This pattern could reflect strategic operational enhancements, increased sales volume, or better supply chain controls aimed at reducing inventory holding periods and improving overall operational agility.