Okta Inc (OKTA)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,365,000 | 3,276,000 | 3,003,000 | 3,038,000 | 2,917,000 | 2,980,000 | 2,727,000 | 2,686,000 | 2,843,000 | 3,229,000 | 3,006,940 | 2,945,500 | 2,898,640 | 3,041,000 | 2,852,870 | 2,877,160 | 3,012,140 | 2,878,570 | 2,757,540 | 2,706,940 |
| 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 |
| Current ratio | 1.47 | 1.30 | 1.34 | 1.83 | 1.73 | 1.67 | 1.77 | 1.84 | 2.09 | 2.20 | 2.30 | 2.38 | 2.45 | 2.45 | 2.89 | 3.15 | 3.76 | 1.86 | 4.80 | 5.07 |
April 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,365,000K ÷ $2,296,000K
= 1.47
The analysis of Okta Inc.'s current ratio over the period from July 2020 through April 2025 reveals a notable downward trend, indicating evolving liquidity positions. Initially, in July 2020, the current ratio stood at a robust 5.07, suggesting that the company's current assets were more than five times its current liabilities, reflecting a strong liquidity buffer.
Subsequently, the ratio experienced a decline over the following months, reaching 4.80 in October 2020, and then a significant decrease to 1.86 by January 2021, indicating a substantial reduction in liquidity relative to short-term obligations. Between 2021 and early 2022, the current ratio stabilized somewhat, fluctuating within a narrower range, generally above 2.3, which suggests a moderate liquidity position, albeit lower than the initial period.
From mid-2022 onwards, there was a steady deterioration in the current ratio. It declined from approximately 2.38 in July 2022 to 1.77 in October 2023, and further decreased to approximately 1.33 in October 2024. This declining trend indicates increasing liquidity pressures, with current assets increasingly covering fewer times the current liabilities, approaching a level that may raise concerns regarding short-term financial resilience.
Within the most recent period, the current ratio shows marginal fluctuations, moving from 1.30 in January 2025 to 1.47 in April 2025. Despite slight recoveries, the ratio remains below 2, suggesting that Okta's liquidity position has weakened over the analyzed timeframe and may warrant further scrutiny on how the company manages its short-term assets and liabilities moving forward.
Overall, the trend indicates that while Okta Inc. initially maintained a strong liquidity position, there has been a consistent decline over the period, reflecting potential challenges in maintaining ample current assets relative to current liabilities, which could impact the company's short-term financial stability if the trend persists.
Peer comparison
Apr 30, 2025