Kodiak Gas Services, Inc. (KGS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The financial data indicates that Kodiak Gas Services, Inc. maintains a consistent and notable absence of debt across the analyzed periods. Specifically, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all reported as zero from December 31, 2022, through at least June 30, 2025. This underscores that the company has no recorded debt obligations in terms of long-term liabilities or short-term borrowings, reflecting a fully equity-financed capital structure during this timeframe.
The financial leverage ratio presents a contrasting perspective, displaying a significant presence of leverage at the outset, with a ratio of approximately 13.99 at December 31, 2022. Over subsequent periods, this ratio fluctuates—rising to a peak of around 16.91 by June 30, 2023, then declining sharply to 2.77 by September 30, 2023, before stabilizing in the 3.2 to 3.6 range. These fluctuations suggest that prior to the measured periods, the company was utilizing leverage, likely through borrowed funds, but has since transitioned to a debt-free structure.
Overall, the lack of debt indicates a robust solvency position, with the company not relying on leverage to finance its operations. The high initial leverage ratio points to a history of financial leverage, but the current ratios reflect a financially conservative stance—entirely equity-funded and free from debt obligations—implying a strong solvency profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.65 | 1.38 | 1.39 | 1.21 | 1.45 | 1.51 | 1.18 | 1.61 | 1.75 | 1.79 | 2.46 |
The interest coverage ratio for Kodiak Gas Services, Inc. demonstrates a declining trend from the end of 2022 through the second quarter of 2024, indicating increasing difficulty in generating sufficient earnings to cover interest obligations. Specifically, the ratio decreased from 2.46 as of December 31, 2022, to a low of 1.18 on December 31, 2023. This decline suggests a tightening of financial flexibility and potential stress on the company's ability to meet interest payments solely from its operating earnings during this period.
Following this nadir, the ratio shows signs of stabilization and slight improvement in 2024, with an increase to 1.51 by March 31, 2024, and a subsequent uptick to 1.65 projected for June 30, 2025. Despite this positive shift, the ratios remain relatively close to the critical threshold of 1.0, below which interest obligations could potentially threaten the company's financial stability if persisted over an extended period.
Overall, the trajectory indicates that Kodiak Gas Services has faced increasing financial strain in terms of interest coverage over the past year and a half, but there are emerging signs of recovery or improved earnings capacity in the later forecast periods. Nevertheless, continuous monitoring of these ratios is advisable, as they remain within a range that warrants caution regarding the company’s ability to comfortably service its debt obligations without additional earnings growth or refinancing.