Kodiak Gas Services, Inc. (KGS)

Working capital 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
Total current assets	US$ in thousands	345,525	387,078	383,661	443,357	352,359	263,255	230,226	216,470	262,152	226,121	204,035
Total current liabilities	US$ in thousands	313,318	329,869	319,369	348,788	334,434	237,904	210,629	223,200	209,798	181,566	188,974
Working capital turnover		39.95	22.26	18.03	11.38	54.79	34.55	43.39	—	14.44	16.38	47.00

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,286,651K ÷ ($345,525K – $313,318K)
= 39.95

The working capital turnover ratios for Kodiak Gas Services, Inc. over various reporting periods exhibit notable fluctuations, reflecting shifts in operational efficiency relative to working capital management.

At the end of 2022, the ratio stood at 47.00, indicating that the company was generating approximately 47 dollars in sales for every dollar of working capital employed—a sign of efficient utilization of working capital during that period. However, this figure declined markedly by the first quarter of 2023 to 16.38, suggesting a significant decrease in sales relative to working capital, potentially signaling a period of lower sales efficiency or increased working capital levels.

This downward trend persisted into the second quarter of 2023, with the ratio dropping to 14.44. Notably, the third quarter of 2023 lacks a reported ratio, which may indicate data unavailability or a period of anomalous activity. Later, the ratio recovered substantially by the end of 2023 to 43.39, nearing the previous high levels observed at the end of 2022, implying a renewed efficiency in generating sales per unit of working capital.

In early 2024, the ratio declined again to 34.55 by March 2024 but then surged to 54.79 in the second quarter of 2024, a significant increase that suggests periods of heightened sales efficiency or reduced working capital investment. Subsequently, the ratio fell sharply to 11.38 by the third quarter of 2024, indicating a notable decrease in sales relative to working capital, which could reflect operational challenges, increased working capital needs, or other strategic adjustments.

Towards the end of 2024, the ratio experienced a modest recovery to 18.03 in December and then increased further in the first half of 2025, reaching 22.26 for March 2025 and 39.95 for June 2025. This gradual upward trend may suggest improving sales efficiency or better working capital management ahead of further fluctuations observed in subsequent periods.

Overall, the working capital turnover ratios demonstrate considerable volatility, with periods of both strong and weak operational efficiency. These fluctuations could be indicative of changing operational conditions, investment strategies, or industry-specific factors impacting the company's ability to convert working capital into sales effectively.