Okta Inc (OKTA)

Days of sales outstanding (DSO)

		Apr 30, 2025	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020
Receivables turnover		7.77	4.20	5.47	6.50	7.69	4.05	5.19	5.32	6.76	3.86	4.55	4.95	5.65	3.27	4.54	4.27	4.14	4.29	5.51	6.37
DSO	days	46.97	86.84	66.72	56.12	47.44	90.16	70.37	68.57	53.98	94.49	80.30	73.75	64.54	111.73	80.35	85.45	88.25	85.12	66.29	57.34

April 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.77
= 46.97

The analysis of Okta Inc’s Days Sales Outstanding (DSO) over the specified period reveals fluctuations indicative of varying accounts receivable collection efforts and customer payment behaviors.

Initially, from July 31, 2020, to January 31, 2021, the DSO increased significantly from approximately 57.34 days to 85.12 days, reflecting a lengthening of the average collection cycle. This upward trend continued, peaking at 111.73 days on January 31, 2022, suggesting prolonged receipt of payments and potentially stretched credit terms or delays in customer collections.

From early 2022 through mid-2022, the DSO decreased markedly, reaching a low of 47.44 days by April 30, 2024. This reduction signifies an improvement in receivables collection efficiency, potentially driven by tighter credit policies or better collection practices. However, the DSO then experienced some variability, with increases to 70.37 days by October 2023 and further to approximately 86.84 days by January 2025, indicating periods where collection periods elongated again.

Overall, the trend from 2020 through 2025 demonstrates significant fluctuations in the company’s receivables management, with notable peaks occurring in early 2022 and late 2024, and troughs around mid-2022 and mid-2024. The periods of increased DSO could imply challenges in cash flow or changes in customer creditworthiness, while the declines suggest periods of improved collections and receivables management. These fluctuations should be monitored closely, as sustained high DSO levels might impact liquidity, whereas consistent reductions could favorably influence cash flows and financial stability.