Okta Inc (OKTA)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 494,000 | 409,000 | 310,000 | 515,000 | 322,000 | 334,000 | 400,000 | 356,000 | 125,000 | 264,000 | 249,624 | 216,022 | 194,227 | 260,000 | 372,372 | 225,265 | 659,886 | 434,607 | 409,769 | 957,234 |
| Short-term investments | US$ in thousands | 2,231,000 | 2,114,000 | 1,938,000 | 1,843,000 | 1,998,000 | 1,868,000 | 1,730,000 | 1,750,000 | 2,245,000 | 2,316,000 | 2,223,540 | 2,260,960 | 2,292,900 | 2,242,000 | 2,109,690 | 2,294,640 | 2,030,180 | 2,152,580 | 2,126,370 | 1,557,280 |
| Total current liabilities | US$ in thousands | 2,296,000 | 2,523,000 | 2,234,000 | 1,660,000 | 1,686,000 | 1,782,000 | 1,543,000 | 1,456,000 | 1,362,000 | 1,465,000 | 1,309,450 | 1,236,580 | 1,185,280 | 1,243,000 | 988,166 | 912,534 | 800,461 | 1,545,610 | 573,940 | 533,580 |
| Cash ratio | 1.19 | 1.00 | 1.01 | 1.42 | 1.38 | 1.24 | 1.38 | 1.45 | 1.74 | 1.76 | 1.89 | 2.00 | 2.10 | 2.01 | 2.51 | 2.76 | 3.36 | 1.67 | 4.42 | 4.71 |
April 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($494,000K
+ $2,231,000K)
÷ $2,296,000K
= 1.19
The cash ratio of Okta Inc. has exhibited notable fluctuations over the observed period from July 31, 2020, to April 30, 2025. Initially, in July 2020, the cash ratio stood at a high level of 4.71, indicating a robust liquidity position whereby the company's cash and cash equivalents exceeded its current liabilities by a significant margin. Throughout the subsequent periods, there has been a general declining trend in the cash ratio, with some intermittent fluctuations.
By October 31, 2020, the ratio had slightly decreased to 4.42, maintaining a strong liquidity buffer. A marked decline becomes apparent by January 31, 2021, when the ratio dropped significantly to 1.67, reflecting a reduction in the company's cash holdings relative to its current liabilities. The ratio then fluctuated between approximately 2.00 and 3.36 through April 2021 to July 2021, suggesting periods where the company's liquidity remained relatively stable albeit at lower levels compared to the initial high.
From late 2021 onward, the cash ratio demonstrated a continuing downward trajectory, reaching values close to 1.89 by October 31, 2022, and further declining to approximately 1.74 by April 2023. The ratio fell below 1.5 by July 2023, and subsequently, through October 2023, it decreased to 1.38. This decline persisted into early 2024, with the ratio reaching as low as 1.24 on January 31, 2024. Although there were minor increases in the subsequent quarters, the ratio remained below 1.50, indicating a leaner liquidity cushion.
By October 31, 2024, the cash ratio was approximately 1.01, approaching a point where cash holdings are nearly equivalent to current liabilities. The subsequent figures from January to April 2025 show a slight recovery, with ratios of around 1.00 and 1.19, but overall, the trend continues to suggest a reduction in cash reserves relative to current obligations over this period.
Overall, the decrease in Okta Inc.'s cash ratio over the analyzed period indicates a gradual reduction in liquidity in terms of cash and cash equivalents relative to current liabilities. While the ratio remains above 1 throughout, signifying that cash resources generally cover current liabilities, the diminishing trend points to a potential narrowing of the company's liquidity margin, which warrants attention for assessing its ability to meet short-term obligations solely through cash and equivalents.
Peer comparison
Apr 30, 2025