Okta Inc (OKTA)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 76.69% | 76.32% | 76.12% | 75.82% | 75.15% | 74.33% | 73.46% | 72.49% | 71.61% | 70.61% | 69.61% | 68.88% | 68.48% | 69.51% | 70.65% | 71.99% | 73.96% | 73.94% | 73.80% | 73.69% |
| Operating profit margin | 0.45% | -2.84% | -6.51% | -10.60% | -17.06% | -22.80% | -26.52% | -32.47% | -36.54% | -42.86% | -50.19% | -53.78% | -62.57% | -59.00% | -52.72% | -45.23% | -26.85% | -24.44% | -25.29% | -26.72% |
| Pretax margin | 5.07% | 1.76% | -1.14% | -5.22% | -10.33% | -14.89% | -20.37% | -27.74% | -34.43% | -43.11% | -51.30% | -56.45% | -67.02% | -65.35% | -59.82% | -53.11% | -35.12% | -31.86% | -31.35% | -32.88% |
| Net profit margin | 4.85% | 1.07% | -1.54% | -5.55% | -11.69% | -15.69% | -21.40% | -28.66% | -35.25% | -43.86% | -52.19% | -57.21% | -67.06% | -65.25% | -59.29% | -52.47% | -35.18% | -31.88% | -31.38% | -32.93% |
The analysis of Okta Inc.’s profitability ratios over the period from July 2020 to October 2025 reveals notable trends and developments.
Gross Profit Margin demonstrates a consistent upward trajectory, starting at approximately 73.69% in July 2020 and gradually increasing to approximately 76.69% by April 2025. This indicates a steady improvement in the company's ability to retain revenue after direct costs, reflecting either enhanced pricing strategies, efficiency gains, or a shift towards more profitable product lines.
Operating Profit Margin presents a different trend. The ratio remains deeply negative throughout the period, indicative of ongoing operational losses. Initially, in July 2020, the margin was around -26.72%, with the deterioration reaching a low of approximately -62.57% in April 2022. Although there is a clear trajectory toward reduced losses over time, the company remained unprofitable on an operating basis through October 2024, with margins improving from around -26.52% in October 2023 to a near-breakeven point of approximately +0.45% by April 2025.
Pretax Margin follows a similar pattern to the operating margin, remaining substantially negative for most of the period, reflecting significant pre-tax losses. The margin improved from approximately -32.88% in July 2020 to near zero at 5.07% in April 2025, signaling noteworthy progress in pre-tax profitability, likely due to reductions in operating losses and possibly favorable changes in interest expenses or non-operating items.
Net Profit Margin mirrors the pretax trend, remaining deeply negative throughout most of the period. Initially, at -32.93% in July 2020, the margin steadily recovered, reaching positive territory at approximately 4.85% by April 2025. This shift to profitability on a net basis underscores an overall improvement in the company's bottom-line performance, driven by the operational efficiencies and revenue growth visibility indicated by other ratios.
In summary, while Okta Inc. has successfully enhanced its gross profit margin, indicating stronger revenue retention relative to costs, the journey toward operational and net profitability has been gradual. The company experienced significant losses historically but has shown consistent improvement, with metrics approaching or reaching profitability by late 2024 and early 2025. This indicates a positive trajectory towards sustainable profitability, albeit after a prolonged period of substantial losses.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.39% | 0.30% | -0.43% | -1.50% | -3.08% | -3.95% | -5.31% | -6.79% | -7.77% | -8.76% | -9.93% | -10.09% | -10.85% | -9.22% | -7.59% | -5.98% | -9.27% | -8.07% | -7.60% | -7.44% |
| Return on total capital | 0.96% | -0.41% | -1.40% | -1.99% | -3.98% | -5.59% | -7.54% | -9.98% | -12.00% | -14.45% | -15.83% | -15.61% | -16.85% | -13.22% | -10.49% | -7.95% | -36.55% | -28.61% | -27.72% | -27.53% |
| Return on equity (ROE) | 1.98% | 0.44% | -0.62% | -2.22% | -4.64% | -6.03% | -8.10% | -10.49% | -12.49% | -14.91% | -16.70% | -16.79% | -17.94% | -14.33% | -11.41% | -8.85% | -46.56% | -38.37% | -35.41% | -33.82% |
The provided data indicates that Okta Inc.'s profitability ratios have experienced a notable trend of gradual improvement over the analyzed period, reflecting a trajectory toward enhanced profitability, albeit still within negative territory in most cases.
Operating Return on Assets (Operating ROA):
Initially, the company displayed consistent negative operating ROA figures, beginning at -6.04% as of July 31, 2020. Over subsequent periods, the ratio declined further, reaching a low of -10.13% in April 2022, before demonstrating a steady upward trend starting from July 2023. By October 2024, the operating ROA reached -1.83%, and by January 2025, it crossed into positive territory at +0.13%. This progression suggests improving core operational efficiency and potential profitability improvements at the operational level.
Return on Assets (ROA):
Similar to operating ROA, the ROA exhibits a persistent negative trend, with figures starting at -7.44% in July 2020. After reaching a nadir of -10.85% in April 2022, the ratio improved consistently, turning positive around January 2025 at +0.30%. The initial steep decline indicates ongoing challenges in translating asset utilization into profit, but the subsequent positive turn reflects operational advancements.
Return on Total Capital:
The return on total capital followed a downward trend through most of the period, peaking at -36.55% in April 2021. Subsequently, the ratio displayed a steady recovery, approaching near-zero levels by early 2025, with the latest figure at +0.96%. This pattern points toward an increasingly efficient deployment of comprehensive capital resources and a move toward profitability in capital utilization.
Return on Equity (ROE):
ROE, a key profitability indicator, remained heavily negative throughout the period, with initial values at -33.82%. While all figures remained in negative territory, a consistent upward trend is evident, culminating in a marginal positive value of 1.98% as of April 2025. The trend indicates gradual improvement in the company's ability to generate returns for shareholders, suggesting enhanced profitability efficiencies and potentially better cost control or revenue growth strategies.
Summary of Trends:
Across all profitability ratios, Okta Inc. shows a long-term trend of progressive improvement from negative to near-positive levels. The data reflects ongoing efforts to enhance operational efficiency, optimize asset utilization, and generate shareholder value. However, the ratios remain close to zero, implying that the company has yet to achieve consistent, sustainable profitability and that further operational or strategic improvements may be necessary to establish durable positive returns.
Overall, while the profitability ratios demonstrate a positive directional shift, continued focus on revenue growth, cost management, and strategic operational initiatives are essential for consolidating profitability and enhancing shareholder value in future periods.