Okta Inc (OKTA)

Financial leverage ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Total assets	US$ in thousands	9,437,000	8,989,000	9,307,000	9,206,000	3,298,800
Total stockholders’ equity	US$ in thousands	6,405,000	5,888,000	5,466,000	5,922,000	694,043
Financial leverage ratio		1.47	1.53	1.70	1.55	4.75

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,437,000K ÷ $6,405,000K
= 1.47

The financial leverage ratio of Okta Inc. demonstrates significant fluctuations over the analyzed period from January 31, 2021, to January 31, 2025.

As of January 31, 2021, the ratio was notably high at 4.75, indicating that the company was financed with a substantial proportion of debt relative to equity at that time. This elevated ratio suggests a high degree of financial risk and reliance on leverage to support operations or growth initiatives.

By January 31, 2022, the ratio markedly declined to 1.55, representing a substantial reduction in leverage. This decrease indicates a repositioning towards a more balanced or less debt-dependent capital structure, potentially reflecting debt repayments, equity issuance, or operational improvements that reduced reliance on borrowed funds.

The ratio experienced a modest increase to 1.70 by January 31, 2023. Although higher than the previous year, it remains considerably lower than the 2021 level, suggesting a slight uptick in leverage possibly due to strategic borrowing or increased debt levels.

By January 31, 2024, the ratio reverted slightly downward to 1.53, maintaining a relatively stable leverage position compared to the previous year, indicating no dramatic change in the company's overall debt-equity structure during this period.

Finally, as of January 31, 2025, the ratio further declined slightly to 1.47, implying a continued trend towards decreasing leverage or reinforcing the company's efforts to maintain a conservative capital structure.

Overall, the trend reflects a significant reduction in Okta Inc.'s financial leverage from 2021 to 2022, followed by relative stability in leverage levels through 2023 to 2025. This pattern may suggest strategic efforts to reduce debt exposure, improve financial stability, or adapt to changing market conditions.