Okta Inc (OKTA)

Fixed asset turnover

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Revenue	US$ in thousands	2,610,000	2,263,000	1,858,000	1,300,200	835,424
Property, plant and equipment	US$ in thousands	—	—	59,000	213,428	62,783
Fixed asset turnover		—	—	31.49	6.09	13.31

January 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,610,000K ÷ $—K
= —

The fixed asset turnover ratio for Okta Inc. demonstrates significant fluctuations over the analyzed period from January 31, 2021, to January 31, 2023.

In the fiscal year ending January 31, 2021, the ratio was 13.31, indicating that the company's net sales generated approximately 13.31 dollars of revenue for each dollar invested in fixed assets. This figure suggests a relatively efficient deployment of fixed assets to produce sales at that time.

By the subsequent year ending January 31, 2022, the ratio decreased markedly to 6.09. This decline reflects a reduced level of sales generation relative to fixed assets, potentially attributable to increased investment in fixed assets without a proportional growth in sales, or operational inefficiencies during that period.

Contrasting sharply, the ratio then increased substantially to 31.49 as of January 31, 2023. This significant rise suggests a highly efficient utilization of fixed assets, where Okta Inc. was able to generate considerably higher sales per dollar invested in fixed assets compared to previous years. Such a spike could result from favorable operational efficiencies, strategic asset utilization, or a change in business model that maximized the productivity of fixed assets.

Data for subsequent fiscal years (January 31, 2024, and January 31, 2025) are not available, and therefore no further trend analysis can be conducted for those periods.

In summary, the company's fixed asset turnover ratio experienced considerable volatility, with a notable decline followed by a sharp increase within a two-year span. These fluctuations highlight periods of changing asset utilization efficiency, which warrant further investigation into the underlying operational or strategic factors driving these variations.