Kodiak Gas Services, Inc. (KGS)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 718,648 | 533,740 | 267,351 | 210,177 | 324,945 |
| Payables | US$ in thousands | 57,562 | 49,842 | 37,992 | 37,593 | 33,409 |
| Payables turnover | 12.48 | 10.71 | 7.04 | 5.59 | 9.73 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $718,648K ÷ $57,562K
= 12.48
The payables turnover ratio for Kodiak Gas Services, Inc. demonstrates notable fluctuations over the analyzed period from December 31, 2020, through December 31, 2024. Initially, the ratio was 9.73 in 2020, indicating that the company settled its accounts payable approximately 9.73 times during that year. This ratio declined significantly in 2021 to 5.59, suggesting that the company took longer to pay its suppliers or extended payment terms during that period.
In 2022, the payables turnover increased to 7.04, reflecting an improvement in paying suppliers more promptly compared to the previous year but still below the 2020 level. The upward trend continued markedly in 2023, with the ratio reaching 10.71, surpassing the initial 2020 figure and indicating a relatively faster payment cycle. The most recent data from 2024 shows further improvement, with the ratio climbing to 12.48, which implies an even shorter average payment period and a more aggressive or efficient approach to settling payables.
Overall, the trend of the payables turnover ratio over the period indicates a progression toward more rapid payment practices in recent years, culminating in the highest ratio observed in 2024. This trajectory may reflect improved liquidity management, operational efficiencies, or strategic changes in vendor payment policies.
Peer comparison
Dec 31, 2024