Okta Inc (OKTA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,405,000 | 5,888,000 | 5,466,000 | 5,922,000 | 694,043 |
| ROE | 0.44% | -6.03% | -14.91% | -14.33% | -38.37% |
January 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $28,000K ÷ $6,405,000K
= 0.44%
The analysis of Okta Inc.'s return on equity (ROE) over the period from January 31, 2021, to January 31, 2025, indicates a significant improvement in the company’s equity profitability. Initially, in 2021, the ROE was markedly negative at -38.37%, reflecting substantial challenges in generating positive earnings relative to shareholders’ equity. Over the subsequent years, there was a consistent upward trajectory in ROE: decreasing in negativity to -14.33% in 2022 and slightly deteriorating again to -14.91% in 2023. By 2024, the ROE continued to improve, reaching -6.03%, signaling a narrowing of losses relative to shareholder equity.
Most notably, in 2025, the ROE turned positive, albeit marginally, at 0.44%. This marks a pivotal point suggesting that Okta Inc. may have transitioned into generating profits on shareholders' equity, or at least approached a breakeven point. The progressive movement from deep negative ROE towards positive territory over this four-year span reflects strong ongoing efforts to enhance profitability and operational efficiency. The trend indicates that the company has been successfully reducing its losses and potentially laying the groundwork for sustained future profitability.
Peer comparison
Jan 31, 2025