Okta Inc (OKTA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,567,000 | 6,405,000 | 6,265,000 | 6,133,000 | 5,953,000 | 5,888,000 | 5,730,000 | 5,640,000 | 5,534,000 | 5,466,000 | 5,407,610 | 5,453,020 | 5,472,690 | 5,922,000 | 5,984,560 | 6,042,190 | 682,778 | 694,043 | 680,648 | 685,197 |
| 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% |
April 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $130,000K ÷ $6,567,000K
= 1.98%
The provided data indicates that Okta Inc.'s return on equity (ROE) has demonstrated a consistent upward trend from July 31, 2020, through October 31, 2025. Initially, the company reported significantly negative ROE figures, beginning at -33.82% in July 2020 and declining further to as low as -46.56% by April 2021. This pattern suggests that during this period, the company was experiencing substantial losses relative to shareholders' equity, which is characteristic of a company in early growth stages, undergoing restructuring, or facing operational challenges.
From July 2021 onward, a gradual improvement in ROE is observed. The figure shifted from a negative -8.85% in July 2021 to -11.41% in October 2021, and continued a slow but steady trend of narrowing losses through early 2022, reaching -14.33% in January 2022 and -17.94% in April 2022. Although negative, the trend indicates that losses relative to equity were slightly decreasing over this period.
Subsequently, the ROE showed signs of continuous recovery, with figures like -16.79% in July 2022, -16.70% in October 2022, and improved further to -14.91% in January 2023, and -12.49% by April 2023. This consistent movement toward less negative territory reflects ongoing operational improvements, better expense management, or higher profitability metrics relative to shareholders’ equity.
By mid-2023 and into 2024, the negative ROE approaches zero, with -10.49% in July 2023, -8.10% in October 2023, and -6.03% in January 2024, indicating a substantial reduction in negative returns. The trend turns positive in the subsequent quarters, with ROE figures moving into positive territory: 0.44% in January 2025 and 1.98% by April 2025. This milestone signifies that Okta Inc. has shifted from generating losses to achieving net income attributable to shareholders that exceeds shareholders’ equity, reflecting operational profitability and a potentially healthier financial position.
Overall, the progression of Okta Inc.'s ROE demonstrates significant improvement over the analyzed period, transitioning from consistent and large negative returns to positive territory, which suggests a meaningful enhancement in the company's profitability and efficiency in generating returns on shareholders' equity.
Peer comparison
Apr 30, 2025