Okta Inc (OKTA)
Payables turnover
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 618,000 | 581,000 | 546,000 | 396,405 | 217,681 |
| Payables | US$ in thousands | 13,000 | 12,000 | 12,000 | 20,000 | 8,557 |
| Payables turnover | 47.54 | 48.42 | 45.50 | 19.82 | 25.44 |
January 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $618,000K ÷ $13,000K
= 47.54
The payables turnover ratio for Okta Inc demonstrates notable fluctuations over the analyzed period from January 2021 to January 2025. Initially, the ratio was 25.44 in January 2021, indicating that the company settled its payables approximately 25.44 times within the fiscal year. This ratio declined significantly to 19.82 by January 2022, suggesting a lengthening of the payables period, possibly due to extended payment terms or changes in supplier negotiations.
Subsequently, there was a sharp increase in the ratio to 45.50 by January 2023, reflecting a substantial acceleration in paying off payables and implying more efficient or prompt supplier payments. The ratio maintained a high level in the following period, recording 48.42 in January 2024 and slightly decreasing to 47.54 in January 2025. These elevated ratios indicate that the company consistently paid its suppliers more frequently within the year, aligning with a potentially strong cash flow position or strategic supplier management practices.
Overall, the trend depicts a period of initial deterioration in payables turnover from 2021 to 2022, followed by a significant and sustained improvement beginning in 2023. This pattern may suggest strategic efforts to expedite payables or an improved liquidity position, leading to more regular settlement of obligations in the later years of the period analyzed.
Peer comparison
Jan 31, 2025