Kodiak Gas Services, Inc. (KGS)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total stockholders’ equity | US$ in thousands | 1,348,470 | 1,343,830 | 1,359,910 | 1,246,550 | 1,310,850 | 1,144,970 | 1,142,650 | 1,171,790 | 192,875 | 217,436 | 229,093 |
| Financial leverage ratio | 3.25 | 3.30 | 3.26 | 3.60 | 3.39 | 2.90 | 3.26 | 2.77 | 16.91 | 14.78 | 13.99 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,375,930K ÷ $1,348,470K
= 3.25
The financial leverage ratio of Kodiak Gas Services, Inc. exhibits notable fluctuations over the analyzed periods. As of December 31, 2022, the ratio stood at 13.99, indicating a high level of leverage relative to equity. This ratio increased significantly by March 31, 2023, reaching 14.78, and further escalated to 16.91 by June 30, 2023. These early periods suggest a trend toward a substantially higher degree of leverage, potentially reflecting increased debt usage or capital structure adjustments aimed at financing growth or operational needs.
However, a dramatic decline is observed by September 30, 2023, with the ratio falling sharply to 2.77. This significant reduction indicates a considerable deleveraging event, which could result from debt repayment, equity issuance, or a combination thereof. Despite the notable dip, the ratio modestly increased in subsequent periods, reaching 3.26 by December 31, 2023, and maintaining a relatively stable level around 2.90 to 3.60 through March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024.
Throughout 2024 and into 2025, the leverage ratio shows minor fluctuations within a narrow range, suggesting stabilization of the company's capital structure at a moderate leverage level. The ratio’s stable trend during this period may imply a strategic approach to maintaining manageable debt levels relative to equity, reducing financial risk and improving financial flexibility.
Overall, the pattern indicates periods of substantial leverage followed by rapid deleveraging, culminating in a relatively consistent leverage position in recent periods. This fluctuation could reflect strategic shifts in capital structure, responses to market or operational conditions, or adjustments to debt levels aimed at balancing growth ambitions with financial stability.
Peer comparison
Jun 30, 2025