Okta Inc (OKTA)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -63,000 | -314,000 | -790,000 | -757,514 | -232,526 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,405,000 | 5,888,000 | 5,466,000 | 5,922,000 | 694,043 |
| Return on total capital | -0.98% | -5.33% | -14.45% | -12.79% | -33.50% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-63,000K ÷ ($—K + $6,405,000K)
= -0.98%
The data indicates that Okta Inc.'s return on total capital has experienced a gradual improvement over the period from January 31, 2021, to January 31, 2025. Specifically, the return on total capital was -33.50% as of January 31, 2021, reflecting a significant negative performance, likely constrained by high operating costs, investment expenses, or initial structural inefficiencies.
By January 31, 2022, the return had improved markedly to -12.79%, suggesting an initial positive trend in operational efficiency or revenue growth relative to the total capital employed. This upward movement continued into the following year, although the return remained negative at -14.45% as of January 31, 2023, indicating some volatility in performance or continued strategic investments that haven’t yet fully translated into positive returns.
A further progression occurred by January 31, 2024, with the return on total capital improving significantly to -5.33%. This near-zero level indicates that the company is approaching a breakeven point relative to its total capital, reflecting more effective utilization of capital resources and improved operational results. The most recent data as of January 31, 2025, shows a further movement toward positive territory at -0.98%, approaching a neutral return on total capital, which signifies that the company's efficiency and profitability are rapidly improving and that the company may be transitioning toward consistent positive returns.
Overall, the trend suggests a consistent and substantial reduction in negative returns over the four-year period, illustrating ongoing progress toward enhancing capital efficiency and profitability, although the company has yet to achieve a fully positive return on total capital as of the most recent reporting date.
Peer comparison
Jan 31, 2025