Kodiak Gas Services, Inc. (KGS)

Receivables 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
Revenue (ttm)	US$ in thousands	1,286,651	1,273,461	1,159,311	1,075,772	982,108	875,761	850,381	804,177	755,839	729,684	707,913
Receivables	US$ in thousands	229,930	273,548	261,212	293,927	208,850	161,567	130,616	126,483	123,767	119,534	101,106
Receivables turnover		5.60	4.66	4.44	3.66	4.70	5.42	6.51	6.36	6.11	6.10	7.00

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,286,651K ÷ $229,930K
= 5.60

The receivables turnover ratio for Kodiak Gas Services, Inc. demonstrates notable fluctuations over the analyzed period from December 31, 2022 through June 30, 2025. Initially, at the end of 2022, the ratio stood at 7.00, indicating the company was able to collect its receivables approximately seven times during the year, reflecting relatively efficient receivables management.

Between December 2022 and March 2023, the ratio declined to 6.10, suggesting a slight deterioration in collection efficiency. This downward trend continued into June 2023, where the ratio marginally increased to 6.11, suggesting a stabilization in receivables collection. However, by September 2023, the ratio increased slightly again to 6.36, indicating an improvement in collecting receivables on an annualized basis.

At the year-end of 2023, the ratio further improved to 6.51, signaling continued modest efficiency gains in receivables collection. Contrarily, in the first quarter of 2024, the ratio decreased notably to 5.42, reflecting a slowdown in collection frequency or a potential increase in receivables outstanding.

The trend of declining ratios persisted into the second quarter of 2024 with a further decrease to 4.70, and it continued into the third quarter at 3.66. This sustained decline indicates a significant reduction in receivables turnover, possibly due to looser credit policies, delayed payments from customers, or an increase in receivables that are taking longer to collect.

In the subsequent periods, the ratio shows some recovery. The December 2024 figure stands at 4.44, and an upward trend continues through the first two quarters of 2025, reaching 4.66 in March 2025 and 5.60 in June 2025. These increases suggest a gradual improvement in receivables collection efficiency over this interval.

Overall, the receivables turnover ratio for Kodiak Gas Services, Inc. exhibits a pattern of initial stability and slight fluctuations through early 2023, followed by a significant decline through mid-2024, and then a moderate recovery into mid-2025. The recent upward trend indicates the company's potential efforts or market conditions improving collection performance, though the overall ratio remains below the initial 2022 level. This pattern warrants close monitoring to determine whether the recent improvements are sustained and to assess the underlying factors influencing receivables management.