Okta Inc (OKTA)

Return on assets (ROA)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Net income	US$ in thousands	28,000	-355,000	-815,000	-848,411	-266,332
Total assets	US$ in thousands	9,437,000	8,989,000	9,307,000	9,206,000	3,298,800
ROA		0.30%	-3.95%	-8.76%	-9.22%	-8.07%

January 31, 2025 calculation

ROA = Net income ÷ Total assets
= $28,000K ÷ $9,437,000K
= 0.30%

The analysis of Okta Inc.’s return on assets (ROA) over the specified period reveals a declining trend from January 31, 2021, to January 31, 2024, followed by a notable improvement in the subsequent year. Specifically, the ROA was recorded at -8.07% on January 31, 2021, indicating that the company was experiencing losses relative to its total assets. This negative performance persisted into January 31, 2022, with a slightly increased loss of -9.22%, suggesting a deterioration in asset efficiency or profitability. The ROA remained negative but improved marginally to -8.76% by January 31, 2023, indicating a stabilization of sorts after the previous year's decline.

Between January 31, 2023, and January 31, 2024, the ROA saw a significant movement toward the positive, improving from -8.76% to -3.95%. Although still negative, this shift signifies a reduction in net losses relative to assets, implying that the company was making progress in improving profitability or operational efficiency. The most notable change occurs by January 31, 2025, when the ROA turns positive at 0.30%. This marks a pivotal transition from consistent losses to a modest but meaningful profit generation on assets, indicating a potential turnaround in financial performance.

Overall, the progression of Okta Inc.'s ROA demonstrates a trajectory from negative, loss-incurring operations to a point where the company begins generating positive returns on its assets. This pattern suggests that the company may have implemented strategic initiatives, operational improvements, or received favorable market conditions that contributed to this marked turnaround. The trend underlines the importance of monitoring whether this positive momentum persists in subsequent periods and how it reflects the company’s ongoing ability to convert its asset base into profits.