Okta (NAS:OKTA) Financial Strength

: 6 (As of Jul. 2023)

View and export this data going back to 2017. Start your Free Trial

Okta has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Okta did not have earnings to cover the interest expense. Okta's debt to revenue ratio for the quarter that ended in Jul. 2023 was 0.71. As of today, Okta's Altman Z-Score is 2.40.

Competitive Comparison

For the Software - Infrastructure subindustry, Okta's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Okta Financial Strength Distribution

For the Software industry and Technology sector, Okta's Financial Strength distribution charts can be found below:

* The bar in red indicates where Okta's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Okta Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Okta's Interest Expense for the months ended in Jul. 2023 was $-2 Mil. Its Operating Income for the months ended in Jul. 2023 was $-145 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2023 was $1,573 Mil.

Okta's Interest Coverage for the quarter that ended in Jul. 2023 is

Okta did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Okta's Debt to Revenue Ratio for the quarter that ended in Jul. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Jul. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	1573)	/	2224
	=	0.71

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Okta has a Z-score of 2.40, indicating it is in Grey Zones. This implies that Okta is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.4 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Okta (NAS:OKTA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Okta has the Financial Strength Rank of 6.

Okta Financial Strength Related Terms

Thank you for viewing the detailed overview of Okta's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.

Okta (NAS:OKTA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Okta Inc (NAS:OKTA) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

OKTA:Mexico 0OK:Germany O1KT34:Brazil

Address

100 First Street, Suite 600, San Francisco, CA, USA, 94105

Website

https://www.okta.com

Okta is a cloud-native security company that focuses on identity and access management. The San Francisco-based firm went public in 2017 and focuses on two key client stakeholder groups: workforces and customers. Okta's workforce offerings enable a company's employees to securely access its cloud-based and on-premises resources. The firm's customer offerings allow its clients' customers to securely access the client's applications.

Executives

Larissa Schwartz	officer: See Remarks	C/O OKTA, INC., 100 FIRST STREET, SUITE 600, SAN FRANCISCO CA 94105
Emilie Choi	director	C/O COINBASE GLOBAL, INC., 100 PINE STREET, SUITE 1250, SAN FRANCISCO CA 94111
Shibu Ninan	officer: Chief Accounting Officer	C/O OKTA, INC., 100 FIRST STREET, SUITE 600, SAN FRANCISCO CA 94105
Brett Tighe	officer: See Remarks	C/O OKTA, INC., 100 FIRST STREET, SUITE 600, SAN FRANCISCO CA 94105
Jeff Epstein	director	C/O PRICELINE COM INC, 800 CONNECTICUT AVENUE, NORWALK CT 06854
Ledger Susan St.	officer: See Remarks	C/O OKTA, INC., 100 FIRST STREET, SUITE 600, SAN FRANCISCO CA 94105
Christopher K Kramer	officer: Chief Accounting Officer	C/O OKTA, INC., 100 FIRST STREET, SUITE 600, SAN FRANCISCO CA 94105
Dixon Robert L Jr	director	120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Rebecca Saeger	director	C/O E*TRADE FINANCIAL CORP., 11 TIMES SQUARE, 32ND FLOOR, NEW YORK NY 10036-9992
Shellye L Archambeau	director	1095 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10036
Scgf V Management, L.p.	10 percent owner	2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Andreessen Horowitz Fund I-a, L.p.	10 percent owner	2875 SAND HILL ROAD, MENLO PARK CA 94025
Andreessen Horowitz Fund I-b, L.p.	10 percent owner	2875 SAND HILL ROAD, MENLO PARK CA 94025
Andreessen Horowitz Fund I, L.p.	10 percent owner	2875 SAND HILL ROAD, MENLO PARK CA 94025
Ah Equity Partners I, L.l.c.	10 percent owner	2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025