Kodiak Gas Services, Inc. (KGS)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	4,750	5,562	20,431	28,795	24,105
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	319,369	210,629	188,974	144,061	1,642,990
Cash ratio		0.01	0.03	0.11	0.20	0.01

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,750K + $—K) ÷ $319,369K
= 0.01

The cash ratio of Kodiak Gas Services, Inc. exhibits significant fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the company’s cash ratio was notably low at 0.01, indicating an extremely limited level of cash and cash equivalents relative to current liabilities, suggesting heightened liquidity risk at that time.

In 2021, there was a substantial increase in the cash ratio to 0.20, representing a considerable enhancement in liquidity position, as the company held a more substantial proportion of cash relative to its current obligations. This uptick indicates a potential strategic improvement or efficient liquidity management during that period.

Subsequently, the cash ratio declined to 0.11 by the end of 2022, reflecting a partial reduction in cash reserves relative to current liabilities but still maintaining a relatively improved liquidity stance compared to 2020.

By the end of 2023, the ratio further decreased to 0.03, signaling a significant contraction in the company’s cash relative to current liabilities. This reduction indicates a tightening of liquidity, with a diminished buffer of cash resources available to meet short-term obligations purely through cash holdings.

Finally, by December 31, 2024, the cash ratio diminished further to 0.01, returning to a level comparable to 2020 and suggesting a minimal cash cushion in relation to short-term liabilities. Overall, the trend demonstrates periods of liquidity improvement punctuated by notable declines, culminating in a very lean cash position relative to current liabilities towards the most recent year. This pattern may imply increased reliance on other liquidity sources or financing arrangements, with potential implications for the company's liquidity resilience.