Kodiak Gas Services, Inc. (KGS)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	83,342	50,559	50,380	24,423	51,837	62,641	20,066	30,419	54,553	45,937	86,219
Total assets	US$ in thousands	4,375,930	4,436,120	4,435,120	4,492,010	4,439,280	3,316,430	3,721,840	3,244,240	3,261,360	3,213,750	3,205,540
ROA		1.90%	1.14%	1.14%	0.54%	1.17%	1.89%	0.54%	0.94%	1.67%	1.43%	2.69%

June 30, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $83,342K ÷ $4,375,930K
= 1.90%

The analysis of Kodiak Gas Services, Inc.'s return on assets (ROA) over the period extending from December 31, 2022, through June 30, 2025, reveals notable fluctuations. At the end of 2022, the ROA stood at 2.69%, indicating a relatively efficient use of assets to generate earnings during that period. However, by March 31, 2023, the ROA declined sharply to 1.43%, reflecting a significant decrease in asset efficiency or profitability.

Throughout 2023, the ROA experienced a downward trend, with a slight recovery in the June quarter reaching 1.67% but then declining again to 0.94% by September 30, 2023. The year concluded with a further decrease to 0.54% at the end of December 2023. This declining trend suggests a period of diminishing asset profitability, which could be attributed to various factors such as increased operational costs, lower margins, or competitive pressures impacting overall earnings relative to assets.

In the subsequent periods in 2024, the ROA shows some variability, rising to 1.89% at the end of March but then decreasing again to 1.17% by June 30, 2024, and remaining at 0.54% through September of that year. These fluctuations indicate ongoing volatility in asset efficiency, potentially driven by industry dynamics or company-specific operational challenges.

Looking into the later periods, the ROA averages around 1.14% at the end of 2024 and the first quarter of 2025, before increasing to 1.90% by June 30, 2025. This recent uptick may imply some improvement in profitability or efficiency in deploying assets, although the overall ROA levels remain relatively modest.

Overall, the trend demonstrates a decline from the initial high of 2.69% at the end of 2022 to generally lower levels in subsequent periods, with occasional temporary improvements. Such a pattern suggests that Kodiak Gas Services, Inc. has faced operational or market challenges affecting its net income relative to its asset base, thereby reducing its asset utilization effectiveness over time.