Kodiak Gas Services, Inc. (KGS)

Working capital 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
Total current assets	US$ in thousands	383,661	230,963	204,035	164,148	142,415
Total current liabilities	US$ in thousands	319,369	210,629	188,974	144,061	1,642,990
Working capital turnover		18.03	41.82	47.00	30.19	—

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,159,310K ÷ ($383,661K – $319,369K)
= 18.03

The working capital turnover ratio for Kodiak Gas Services, Inc. reflects its efficiency in utilizing its working capital to generate sales over multiple fiscal periods. On December 31, 2020, the ratio was not available or could not be calculated, possibly due to insufficient data or a lack of positive working capital.

By December 31, 2021, the ratio increased substantially to 30.19, indicating a significant improvement in operational efficiency and the company's ability to generate sales relative to its working capital base. This upward trend continued, reaching a peak of 47.00 on December 31, 2022, suggesting that the company was highly effective in leveraging its working capital during that period.

In 2023, the ratio slightly declined to 41.82, which may imply a moderation in operational efficiency or a change in working capital management. Nonetheless, the ratio remained relatively high, indicating continued strong utilization of working capital to support sales.

By December 31, 2024, the ratio further decreased to 18.03, signaling a notable reduction in the efficiency of working capital utilization relative to sales. This decline could be attributed to various factors, such as increased working capital levels, reduced sales, or changes in operational dynamics.

Overall, the trend demonstrates a period of rising efficiency during 2021 and 2022, followed by a diminishing ratio in subsequent years, indicative of changing operational or financial management factors impacting the company's ability to convert working capital into sales effectively.