Okta Inc (OKTA)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,365,000 | 9,437,000 | 9,010,000 | 9,067,000 | 8,955,000 | 8,989,000 | 8,740,000 | 8,713,000 | 8,900,000 | 9,307,000 | 9,093,740 | 9,074,010 | 9,045,680 | 9,206,000 | 8,996,970 | 8,932,100 | 3,430,450 | 3,298,800 | 3,170,280 | 3,115,020 |
| 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 |
| Financial leverage ratio | 1.43 | 1.47 | 1.44 | 1.48 | 1.50 | 1.53 | 1.53 | 1.54 | 1.61 | 1.70 | 1.68 | 1.66 | 1.65 | 1.55 | 1.50 | 1.48 | 5.02 | 4.75 | 4.66 | 4.55 |
April 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,365,000K ÷ $6,567,000K
= 1.43
The financial leverage ratio of Okta Inc exhibits notable fluctuations over the period from July 2020 to April 2025. Initially, the ratio rose from 4.55 as of July 31, 2020, reaching a peak of 5.02 in April 2021. This upward trend indicates a period where the company was increasingly utilizing debt relative to its equity, thus amplifying its financial leverage during this interval.
However, a significant change occurs starting July 2021, when the ratio sharply declines to 1.48. This sudden decrease suggests a strategic reduction in leverage, possibly due to deleveraging initiatives, repayment of debt, or changes in capital structure. Following this reduction, the ratio remains relatively stable with slight increases and decreases, maintaining a range approximately between 1.43 and 1.70 through October 2024.
In the most recent data points, from October 2023 to October 2024, the leverage ratio stabilizes around 1.50 to 1.53, indicating a more conservative leverage position compared to the peak in 2021. The slight downward trend continuing through early 2025, with values around 1.43 to 1.47, reflects ongoing efforts to manage or reduce financial leverage.
Overall, the analysis reveals that Okta's financial leverage ratio experienced a significant contraction from its peak in early 2021, followed by relative stability at moderate leverage levels. This pattern suggests a strategic shift toward lower leverage after a period of higher debt usage, aligning with prudent financial management practices aimed at reducing financial risk.
Peer comparison
Apr 30, 2025