Okta Inc (OKTA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 63,000 | -26,000 | -88,000 | -122,000 | -237,000 | -329,000 | -432,310 | -562,674 | -664,015 | -790,000 | -855,970 | -851,106 | -922,356 | -782,649 | -627,865 | -480,552 | -249,563 | -198,585 | -188,692 | -188,655 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 0.96% | -0.41% | -1.40% | -1.99% | -3.98% | -5.59% | -7.54% | -9.98% | -12.00% | -14.45% | -15.83% | -15.61% | -16.85% | -13.22% | -10.49% | -7.95% | -36.55% | -28.61% | -27.72% | -27.53% |
April 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $63,000K ÷ ($—K + $6,567,000K)
= 0.96%
The analysis of Okta Inc.'s return on total capital (ROTC) over the specified period reveals a significant improvement from highly negative figures towards positive territory. Initially, as of July 31, 2020, ROTC was recorded at -27.53%, indicating that the company was generating negative returns relative to the total capital employed, which suggests underperformance or ongoing investment needs exceeding operational gains. This trend persisted with marginal fluctuations until approximately July 31, 2021, when the ROTC approached -7.95%, marking a narrowing of the gap from initial levels.
From mid-2021 onward, the data demonstrates a steady and continuous decline in negative ROTC figures, reflecting a gradual enhancement in the company's ability to generate returns on its total capital. The decline persisted through subsequent periods, with the ROTC reaching -12.00% by April 30, 2023, and further improving to -7.54% by October 31, 2023. This trend denotes incremental operational or financial efficiencies contributing towards better utilization of capital resources.
In the most recent periods, the ROTC has transitioned into positive territory, with figures crossing zero—from -0.41% on January 31, 2025, to +0.96% by April 30, 2025. This shift indicates that Okta Inc. is now able to generate a positive return on its total capital, signaling a potential turning point toward profitability and effective capital management. Overall, the data depicts a trajectory of substantial recovery and improvement in the company's capacity to generate returns on its invested capital over the specified timeline.
Peer comparison
Apr 30, 2025