Kodiak Gas Services, Inc. (KGS)

Number of days of payables

		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
Payables turnover		15.32	10.81	12.48	7.78	8.69	7.51	7.97	6.65	8.27	7.87	7.04
Number of days of payables	days	23.83	33.77	29.24	46.90	42.02	48.60	45.79	54.89	44.12	46.40	51.87

June 30, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 15.32
= 23.83

The analysis of Kodiak Gas Services, Inc.'s days of payables over the specified periods indicates notable fluctuations. Starting from December 31, 2022, the average payable period was approximately 51.87 days. This duration decreased to 46.40 days by March 31, 2023, and further declined to 44.12 days by June 30, 2023, suggesting an improvement in the company's ability to settle liabilities more promptly during this interval.

However, a reversal occurred in the subsequent quarter, with the payable period increasing markedly to 54.89 days by September 30, 2023, indicating a potential extension in the company’s payment cycles or possible delays in settling accounts payable. Following this peak, a downward trend resumed, with the payable days decreasing to 45.79 days by December 31, 2023, and then to 48.60 days by March 31, 2024. A further reduction is observed in the June 30, 2024, period, where the payable days decreased to 42.02 days.

The trend continues to show variability, with the payable period slightly increasing again to 46.90 days by September 30, 2024, before a more significant reduction to 29.24 days by December 31, 2024. This sharp decline suggests an improvement in payment efficiency or a change in payment terms. Subsequently, the payable days increase modestly to 33.77 days by March 31, 2025, and then drop substantially to 23.83 days by June 30, 2025.

Overall, the data reflects fluctuating payment practices, with periods of extending payable cycles potentially indicating strategic delays in payments or shifts in vendor relationships, contrasted by phases where the company accelerates its settlement of payables. The trend toward decreasing days of payables toward the latter part of the period may point to enhanced cash flow management or tighter payment policies.