Okta Inc (OKTA)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | 65.96 | 64.89 | 62.27 | 61.50 | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (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 |
| Number of days of payables | days | 7.01 | 7.68 | 7.24 | 6.77 | 7.46 | 7.54 | 6.98 | 8.35 | 6.55 | 8.02 | 34.09 | 32.03 | 26.70 | 18.42 | 12.47 | 12.04 | 14.80 | 14.35 | 9.28 | 9.32 |
| Cash conversion cycle | days | 39.96 | 79.17 | 59.48 | 49.35 | 39.98 | 82.62 | 129.35 | 125.11 | 109.69 | 147.97 | 46.21 | 41.72 | 37.85 | 93.31 | 67.88 | 73.41 | 73.45 | 70.77 | 57.01 | 48.02 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 46.97 – 7.01
= 39.96
The analysis of Okta Inc's Cash Conversion Cycle (CCC) over the period from July 2020 to April 2025 reveals significant fluctuations, reflecting changes in the company's operational efficiency and working capital management.
Initially, in July 2020, the CCC stood at approximately 48 days, indicating the company took nearly two months to convert its investments in inventory and receivables into cash, offset by its payables. Over the subsequent quarters, there was a gradual increase, reaching a peak of approximately 147.97 days in January 2023. This substantial lengthening suggests a worsening of the company's efficiency in collections and inventory management, potentially implying longer receivable periods or delays in revenue realization during this period.
Between 2023 and 2024, a notable reversal occurred. The CCC decreased markedly from a high of nearly 148 days to approximately 39.98 days as of April 2024, indicating a significant improvement in operational efficiency. The reduction implies faster collection of receivables, shorter inventory cycles, or more favorable payable terms. However, slight increases resumed thereafter, with the cycle rising again to approximately 59.48 days by October 2024 and further to 79.17 days in January 2025, indicating some degree of cyclical instability or shifts in working capital management.
Overall, the data depicts a period of volatility, with extended receivable and inventory cycles during 2022 and early 2023, followed by measures that led to more efficient cash conversion processes. The fluctuations could be attributed to changes in sales strategies, customer credit policies, product mix, or other operational adjustments impacting the company's liquidity cycle.
Peer comparison
Apr 30, 2025