Kodiak Gas Services's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 57.53.
Kodiak Gas Services's Days Inventory for the
three
months ended in Mar. 2026 was 48.93.
Kodiak Gas Services's Days Payable for the
three
months ended in Mar. 2026 was 34.49.
Therefore, Kodiak Gas Services's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 71.97.
Kodiak Gas Services (NYSE:KGS) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Kodiak Gas Services Cash Conversion Cycle Related Terms
Kodiak Gas Services Cash Conversion Cycle Historical Data
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The historical data trend for Kodiak Gas Services's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KGS vs NOV, WFRD, AROC: Cash Conversion Cycle Comparison
For the Oil & Gas Equipment & Services subindustry, Kodiak Gas Services's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kodiak Gas Services Cash Conversion Cycle vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kodiak Gas Services's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Kodiak Gas Services's Cash Conversion Cycle falls into.
Kodiak Gas Services Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Kodiak Gas Services's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kodiak Gas Services (KGS) has a Cash Conversion Cycle of 71.97 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Kodiak Gas Services and its competitors.
Is Kodiak Gas Services' Cash Conversion Cycle too high?
Kodiak Gas Services' current Cash Conversion Cycle is 71.97. The Oil & Gas industry median Cash Conversion Cycle is 18.48. Kodiak Gas Services' value of 71.97 is 289.4% above this industry median. Overall, Kodiak Gas Services has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kodiak Gas Services' Cash Conversion Cycle compare to NOV and WFRD?
Kodiak Gas Services' Cash Conversion Cycle of 71.97 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 18.48. Kodiak Gas Services' value of 71.97 is 289.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for an Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 18.48, based on 915 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kodiak Gas Services's current Cash Conversion Cycle of 71.97 is 289.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Kodiak Gas Services and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 18.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kodiak Gas Services's current Cash Conversion Cycle is 71.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kodiak Gas Services stock overvalued right now?
Based on GuruFocus' analysis, Kodiak Gas Services (KGS) is currently considered Significantly Overvalued. The stock's GF Value™ is $37.23, compared to a current price of $73.71 — trading 98% above its estimated fair value. The current Cash Conversion Cycle is 71.97 and 289.4% above the Oil & Gas industry median of 18.48. Kodiak Gas Services' overall GF Score™ is 48/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Kodiak Gas Services (KGS), the current Cash Conversion Cycle is 71.97 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kodiak Gas Services (KGS) Overvalued in 2026?
Based on GuruFocus' analysis, Kodiak Gas Services stock appears to be overvalued.
The current stock price of $73.71 is trading 98% above its estimated GF Value™ of $37.23.
GuruFocus considers Kodiak Gas Services to be Significantly Overvalued.
Key valuation signals for KGS:
Cash Conversion Cycle: 71.97
GF Value™: $37.23 vs. price of $73.71 (98% above fair value)
Industry Position: 289.4% above the Oil & Gas median
No single metric tells the full story. See the KGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kodiak Gas Services Inc is an operator of contract compression infrastructure in the United States. The company manages its business through two operating segments: Contract Services and Other Services. Contract Services consists of operating company-owned and customer-owned compression, gas treating, and cooling infrastructure, pursuant to fixed-revenue contracts to enable the production and gathering of natural gas and oil. Other Services consist of a full range of contract services to support the ancillary needs of customers, including station construction, maintenance and overhaul, freight and crane charges, and other time and material-based offerings. Maximum revenue for the company is generated from its Contract Services segment.
48GF Score
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