Okta Inc (OKTA)

Short-term

Turnover ratios

The activity ratios of Okta Inc. over the specified periods provide important insights into the company's operational efficiency and management of assets and liabilities.

Inventory Turnover:
The data indicates that inventory turnover was not reported for January 31, 2021, and January 31, 2022, and remains unavailable for January 31, 2024 and 2025. However, as of January 31, 2023, the inventory turnover ratio is recorded at 5.93. Given that this company primarily operates as a SaaS provider, the inventory turnover metric may not be highly relevant or may reflect minimal inventory levels, which is typical in software services.

Receivables Turnover:
Okta’s receivables turnover ratios show a gradual improvement over the period. Starting from 4.29 on January 31, 2021, it declined to 3.27 in 2022, suggesting a slight increase in the average collection period or more lenient credit terms. Subsequently, the ratio increased to 3.86 in 2023, further improving to 4.05 in 2024, and reaching 4.20 in 2025. This trend indicates enhanced efficiency in collecting receivables, contributing positively to cash flow management.

Payables Turnover:
The payables turnover ratio exhibits significant fluctuation but demonstrates an overall increasing trend from 25.44 in 2021 to 45.50 in 2023, and further to 48.42 in 2024 before a slight decrease to 47.54 in 2025. An increase in this ratio suggests the company is paying its suppliers more frequently or in shorter periods, which could reflect improved liquidity or a strategic change in payment terms.

Working Capital Turnover:
This ratio demonstrates a consistent upward trajectory, rising from 0.63 in 2021 to 2.92 in 2025. The progressive increase signifies enhanced efficiency in utilizing working capital to generate revenue. It indicates that the company is becoming more effective at leveraging its short-term assets and liabilities to support operational activities and revenue growth.

In summary, Okta Inc.’s activity ratios reflect a trend of improving receivables collection efficiency and working capital utilization over the analyzed period, alongside increased payables turnover. These patterns generally suggest a strengthening of operational management, though the inventory turnover figures are less indicative given their limited reporting and the nature of the company's business model.

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Average number of days

The activity ratios for Okta Inc, specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, exhibit notable trends over the reported periods.

Regarding the Days of Inventory on Hand, the data indicates that the company had no recorded inventory days up through January 2022. This aligns with the nature of SaaS and cloud-based service companies, which typically do not maintain significant physical inventories. The first measurable DOH appears in January 2023, at approximately 61.50 days, suggesting that at that time, Okta was holding a period of inventory equivalent to around two months. The absence of subsequent data beyond this point may imply that inventory levels remained stable or were not a focal point for the company’s operations thereafter.

The Days of Sales Outstanding (DSO) shows a fluctuating yet generally high trend over the period. In January 2021, the DSO was approximately 85.12 days, increasing significantly to 111.73 days in January 2022. This reflects a lengthening in the collection period, potentially indicating delayed receivables or extended credit terms offered by Okta during that period. Subsequently, the DSO decreased to 94.49 days in January 2023, followed by further reductions to approximately 90.16 days in January 2024 and around 86.84 days in January 2025. The overall trend suggests an improvement in receivables management and collection efficiency over the recent years, moving toward shorter collection cycles.

The Number of Days of Payables has fluctuated but remains relatively low throughout the period. In January 2021, payables were settled over approximately 14.35 days. This reduced to roughly 8.02 days by January 2023 and remained low at around 7.54 days in 2024, with a slight increase to 7.68 days in January 2025. This pattern indicates that Okta tends to pay its suppliers relatively quickly, with the company generally settling payables within about a week or slightly more.

Overall, the activity ratios suggest that Okta Inc maintains minimal physical inventory levels, consistent with its SaaS business model. The increasing trend in DSO during earlier years highlights a potential area of concern regarding receivables management, though the subsequent reductions imply ongoing efforts to enhance collection efficiency. The short payables period indicates a proactive approach to settling obligations, which may positively influence supplier relationships but also reflects a preference for rapid cash outflows.

In summary, Okta’s activity ratios demonstrate an operational pattern characterized by limited inventory holdings, an initial period of extended receivables collection followed by improvement, and prompt settlement of payables. These ratios collectively portray a company with a lean inventory profile, evolving receivables management, and a disciplined approach to accounts payable.

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Long-term

Analysis of Okta Inc.'s long-term activity ratios reveals significant patterns in asset utilization efficiency over the specified periods. The fixed asset turnover ratio, which measures how effectively the company utilizes its fixed assets to generate sales, experienced a notable decline from 13.31 on January 31, 2021, to 6.09 on January 31, 2022. This decline suggests a decrease in fixed asset efficiency during that period, potentially due to increased investments in fixed assets or a temporary reduction in sales productivity. However, from January 31, 2022, to January 31, 2023, the ratio increased substantially to 31.49, indicating a marked improvement in the utilization of fixed assets to generate sales. This peak points to enhanced operational efficiency, possibly driven by strategic asset management, technological improvements, or increased sales effectiveness concerning fixed assets.

The total asset turnover ratio, which assesses the overall efficiency in using total assets to produce revenue, exhibits a more stable trend with gradual changes. It decreased from 0.25 on January 31, 2021, to 0.14 in 2022, reflecting some inefficiencies or increased asset base without proportional sales growth. Subsequently, it rose slightly to 0.20 on January 31, 2023, and continued to improve modestly to 0.25 in 2024 and further to 0.28 projected for 2025. The upward trend in the total asset turnover ratio suggests ongoing improvements in overall asset use efficiency, aligning with incremental growth in sales relative to total assets.

Overall, the ratios indicate that Okta Inc. experienced a period of reduced fixed asset utilization efficiency in early 2022, followed by a substantial rebound, while the efficiency of total asset use has shown a steady, gradual enhancement over the observed timeframe. These trends reflect varying dynamics in asset management and operational performance, with recent data suggesting improved asset productivity and more effective deployment of resources to generate sales.