Okta Inc (OKTA)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 12,000 -74,000 -165,000 -260,000 -403,000 -516,000 -575,000 -670,599 -716,661 -796,350 -868,776 -860,733 -916,111 -767,103 -607,273 -460,693 -242,641 -204,159 -194,266 -188,020
Total assets US$ in thousands 9,365,000 9,437,000 9,010,000 9,067,000 8,955,000 8,989,000 8,740,000 8,713,000 8,900,000 9,307,000 9,093,740 9,074,010 9,045,680 9,206,000 8,996,970 8,932,100 3,430,450 3,298,800 3,170,280 3,115,020
Operating ROA 0.13% -0.78% -1.83% -2.87% -4.50% -5.74% -6.58% -7.70% -8.05% -8.56% -9.55% -9.49% -10.13% -8.33% -6.75% -5.16% -7.07% -6.19% -6.13% -6.04%

April 30, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $12,000K ÷ $9,365,000K
= 0.13%

The operating return on assets (ROA) for Okta Inc. exhibits a consistent negative trajectory from July 2020 through October 2023, indicating that the company has historically incurred operating losses relative to its assets. During this period, the operating ROA fluctuated within a narrow range, with values ranging from approximately -6.04% in July 2020 to around -6.58% in October 2023, reflecting persistent challenges in generating operating income relative to asset base.

Between October 2023 and April 2024, a notable upward trend emerges, with the operating ROA moving from -6.58% toward less negative territory. By July 2024, the ratio further improves to approximately -2.87%, approaching breakeven levels, and by October 2024, it further advances to around -1.83%. This demonstrates a substantial reduction in operating losses relative to assets and suggests an ongoing improvement in operational efficiency or profitability.

The most significant development occurs between October 2024 and April 2025, when the operating ROA crosses into positive territory, changing from -1.83% to approximately 0.13%. By January 2025, the operating ROA reaches around -0.78%, indicating a near break-even point, with the positive trend continuing and strengthening to approximately 0.13% by April 2025. This transition from negative to positive indicates a shift towards more effective utilization of assets to generate operating income, reflecting potential operational improvements, expansion, or cost management initiatives.

Overall, the financial data reveals a trajectory of incremental recovery for Okta Inc., with the operating ROA moving from consistent losses toward breakeven and modest profitability. This pattern underscores a significant improvement in operational performance over the analyzed period, although the company had not yet achieved a robust positive operating return on assets as of April 2025.