Okta Inc (OKTA)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -74,000 | -460,000 | -783,000 | -767,103 | -204,159 |
| Total assets | US$ in thousands | 9,437,000 | 8,989,000 | 9,307,000 | 9,206,000 | 3,298,800 |
| Operating ROA | -0.78% | -5.12% | -8.41% | -8.33% | -6.19% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $-74,000K ÷ $9,437,000K
= -0.78%
The operating return on assets (ROA) for Okta Inc. demonstrates a trajectory of significant improvement over the period from January 31, 2021, to January 31, 2025. In the fiscal year ending January 31, 2021, the company recorded an operating ROA of -6.19%, indicating that operational efficiency was translating into a loss relative to total assets. This negative performance deepened by January 31, 2022, with the operating ROA declining to -8.33%, reflecting an increased inefficiency or greater operational losses in relation to asset base.
By January 31, 2023, the operating ROA further deteriorated to -8.41%, marking a continuity in the negative trend and suggesting persistent operational challenges or high expenditure relative to asset earning capacity. However, the data points reveal a notable reversal in this downward trend by January 31, 2024, with the operating ROA improving to -5.12%. This shift indicates a reduction in operational losses relative to assets, possibly driven by operational improvements, cost-control measures, or revenue growth.
The most significant change occurs between January 31, 2024, and January 31, 2025, where the operating ROA advances sharply to -0.78%. This progression towards a near-zero figure signifies a substantial enhancement in operational efficiency and asset utilization, implying that Okta is moving closer to generating positive operating returns relative to its asset base. Overall, the trend suggests a positive trajectory with the company making considerable strides to reduce operational losses and improve profitability metrics as measured by operating ROA.
Peer comparison
Jan 31, 2025