Kodiak Gas Services, Inc. (KGS)

Payables 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
Payables	US$ in thousands	50,385	72,828	57,562	85,848	65,592	60,721	49,842	48,835	35,100	35,260	37,992
Payables turnover		15.32	10.81	12.48	7.78	8.69	7.51	7.97	6.65	8.27	7.87	7.04

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $771,782K ÷ $50,385K
= 15.32

The payables turnover ratio for Kodiak Gas Services, Inc. exhibits fluctuations over the observed periods, reflecting shifts in the company's efficiency in managing obligations to suppliers. As of December 31, 2022, the ratio stood at 7.04, indicating that the company paid its suppliers approximately 7 times during that fiscal year. This ratio increased steadily through March 31, 2023 (7.87) and June 30, 2023 (8.27), suggesting an improvement in the company's ability or propensity to settle payables more frequently within the periods, possibly indicating stronger cash flow management or a strategic effort to reduce payable periods.

However, a decline is observed by September 30, 2023, where the ratio decreased to 6.65, indicating a slowdown or a delay in paying suppliers during that quarter. Subsequently, the ratio reverted to higher levels, reaching 7.97 by December 31, 2023, and maintaining similar values through March and June of 2024 (7.51 and 8.69, respectively), before dipping slightly again at September 30, 2024 (7.78). This pattern suggests a general stabilization in payable management with some minor fluctuations during this period.

A significant increase occurs by December 31, 2024, with the ratio rising sharply to 12.48, indicating that payables were settled approximately 12.5 times within that fiscal year—effectively doubling previous levels and implying either accelerated payments or a reduction in average payable balances. This elevated level persists into the first half of 2025, with ratios of 10.81 in March and reaching 15.32 by June 30, 2025, demonstrating a marked acceleration in payables turnover rate.

Overall, the trend indicates periods of both contraction and expansion in payable management intensity, with notable acceleration occurring toward the end of the examined timeframe. The upward trend in ratios at the later dates suggests an enhanced efficiency in paying suppliers, which could be influenced by improved operating cash flows, renegotiated payment terms, or strategic policy changes aimed at supplier relations or cash management.