Kodiak Gas Services, Inc. (KGS)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,159,310	850,381	707,913	606,375	532,420
Receivables	US$ in thousands	261,212	130,616	101,106	80,749	65,275
Receivables turnover		4.44	6.51	7.00	7.51	8.16

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,159,310K ÷ $261,212K
= 4.44

The receivables turnover ratio for Kodiak Gas Services, Inc. demonstrates a consistent downward trend over the analyzed period from December 31, 2020, through December 31, 2024. Specifically, the ratio declined from 8.16 times in 2020 to 7.51 times in 2021, indicating a slight decrease in the company's ability to convert its receivables into cash within a year. This decline continued into 2022, with the ratio decreasing further to 7.00, signaling a modest extension in the collection period. The downward trajectory persisted into 2023, with the ratio falling to 6.51, suggesting a gradual slowdown in receivables collection efficiency. The most notable reduction occurred between 2023 and 2024, where the ratio dropped sharply to 4.44, representing a significant decrease in receivables turnover. Overall, the pattern indicates an elongation of the average collection period, which could reflect potential challenges in receivables management or changing credit policies. This trend warrants further analysis to determine if it signifies underlying issues affecting cash flow or customer creditworthiness.