Okta Inc (OKTA)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 130,000 | 28,000 | -39,000 | -136,000 | -276,000 | -355,000 | -463,918 | -591,815 | -691,287 | -815,000 | -903,268 | -915,682 | -981,892 | -848,411 | -683,031 | -534,484 | -317,902 | -266,332 | -240,998 | -231,729 |
| 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 |
| 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% |
April 30, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $130,000K ÷ $9,365,000K
= 1.39%
The analysis of Okta Inc.'s Return on Assets (ROA) over the period from July 2020 to April 2025 reveals a progressive improvement in profitability metrics despite initially negative values. Beginning with a ROA of -7.44% in July 2020, the company's asset efficiency remained below zero throughout the subsequent periods, reflecting ongoing losses relative to its asset base.
From the data, it is evident that the ROA fluctuated within a relatively narrow negative range through most of 2020 and 2021, peaking at -5.98% in July 2021 and reaching as low as -10.85% in April 2022. These figures suggest that during this period, Okta was generating losses proportional to its asset base, indicating operational challenges or investments not yet translating into positive returns.
However, starting from late 2022 onwards, a marked trend of continuous improvement emerges. The ROA moved from approximately -9.93% in October 2022 to -8.76% in January 2023, and further into less negative territory by April 2023 at -7.77%. This positive trajectory persisted, with the ROA approaching closer to zero by October 2023, at -5.31%, indicating a significant reduction in asset-related losses.
The most notable development is the transition from negative to positive territory observed between January 2025 and April 2025. The ROA improved from -3.95% in January 2024 to 0.30% in January 2025, implying that the company began generating net income relative to its assets. This shift signifies a potential achievement of operational profitability and improved asset utilization efficiency.
Overall, the trend in Okta Inc.'s ROA demonstrates a consistent convergence toward breakeven and profitability over the analyzed period. The company's ability to reduce losses and eventually generate positive returns relative to its assets reflects operational improvements, successful strategic initiatives, or increased revenue efficiency. Nonetheless, the initial prolonged period of negative ROA underscores the importance of continued focus on operational efficiency and sustainable growth strategies to sustain positive returns in the future.
Peer comparison
Apr 30, 2025