Okta Inc (OKTA)

Working capital 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
Total current assets	US$ in thousands	3,416,000	2,980,000	3,229,000	3,041,000	2,878,570
Total current liabilities	US$ in thousands	2,523,000	1,782,000	1,465,000	1,243,000	1,545,610
Working capital turnover		2.92	1.89	1.05	0.72	0.63

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,610,000K ÷ ($3,416,000K – $2,523,000K)
= 2.92

The analysis of Okta Inc's working capital turnover over the specified period indicates a consistent and significant improvement in operational efficiency. Starting from a ratio of 0.63 as of January 31, 2021, the metric increased to 0.72 by January 31, 2022, reflecting a modest enhancement in the company's ability to generate revenue relative to its net working capital. This upward trend continued more markedly, with the ratio reaching 1.05 as of January 31, 2023, effectively doubling from the initial value and signaling better utilization of working capital in supporting revenue generation.

The progression persisted into subsequent years, culminating in a ratio of 1.89 by January 31, 2024. This near doubling again suggests improved efficiency and potentially better management of receivables, payables, and inventory components relative to sales. The most recent data point, as of January 31, 2025, shows a further substantial increase to 2.92, nearly a threefold rise compared to the 2021 figure.

Overall, the upward trajectory in working capital turnover demonstrates that Okta Inc has significantly enhanced its operational efficiency, possibly through improved management of current assets and liabilities, streamlined processes, or increased sales relative to working capital. This trend indicates more effective utilization of working capital resources to support revenue growth over the analyzed period.