Okta Inc (OKTA)
Quick 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 | 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 |
| Receivables | US$ in thousands | 345,000 | 621,000 | 463,000 | 377,000 | 307,000 | 559,000 | 418,000 | 388,000 | 290,000 | 481,000 | 380,754 | 323,377 | 258,911 | 398,000 | 253,568 | 238,478 | 218,474 | 194,818 | 139,473 | 110,540 |
| 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 |
| Quick ratio | 1.34 | 1.25 | 1.21 | 1.65 | 1.56 | 1.55 | 1.65 | 1.71 | 1.95 | 2.09 | 2.18 | 2.26 | 2.32 | 2.33 | 2.77 | 3.02 | 3.63 | 1.80 | 4.66 | 4.92 |
April 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($494,000K
+ $2,231,000K
+ $345,000K)
÷ $2,296,000K
= 1.34
The analysis of Okta Inc.'s quick ratio over the period from July 2020 to October 2025 reveals notable trends and shifts in liquidity positioning. Initially, the quick ratio was exceptionally high, at 4.92 in July 2020, indicating that the company held a substantial amount of liquid assets relative to its current liabilities, providing a strong liquidity buffer. This high figure diminished somewhat to 4.66 by October 2020, maintaining a comfortable liquidity position.
However, from January 2021 onward, a pronounced decline emerged. The quick ratio decreased sharply to 1.80, reflecting a significant reduction in liquid assets in relation to current liabilities. This downward trend continued with some fluctuations, reaching approximately 2.77 by October 2021, and then stabilizing around 2.33 in January 2022. The ratio remained relatively stable in the low 2 range through 2022, with values such as 2.26 in July 2022 and 2.18 in October 2022.
Entering 2023 and into 2024, the quick ratio showed a gradual decline, from 2.09 in January 2023 down to 1.65 by October 2024. The ratio remained above 1.5, suggesting that despite the decrease, the company still maintained a liquidity level sufficient to cover current liabilities with its most liquid assets.
A further decline occurred in the later part of 2024, with the ratio falling to 1.21 in October 2024, which indicates a tightening of liquidity. Nonetheless, subsequent measurements showed slight recovery to around 1.34 in April 2025, but the ratio still remained close to 1.25-1.34, suggesting a continued, though modest, reduction in liquidity cushion.
Overall, the trend indicates a substantial decline in Okta Inc.'s quick ratio from very high levels in 2020 to more modest figures in recent years. This suggests that the company has experienced a reduction in liquid assets relative to its current liabilities over this period. Despite the decline, the ratio consistently remained above 1, indicating that the company's liquid assets generally continued to suffice for covering short-term liabilities, albeit with a narrower margin of safety compared to the initial years.
Peer comparison
Apr 30, 2025