Aureus
AExcellent

Okta, Inc.(OKTA)

A

Financial data as of Jan 31, 2025Improving · Technology

FCF Margin28.0%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$730.0M
Revenue$2.6B
Net Cash-$543.0MNet debt position
Debt / FCF1.3xManageable debt load
Current Ratio1.35Adequate short-term liquidity
YoY FCF Growth+37.0%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (28.0%, 1.3x)
→
+1Strong YoY FCF growth (37.0% YoY)
→
+1Very low debt-to-FCF ratio (1.3x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (28.0%)
  • Very low debt relative to cash flow (1.3x)
  • Strong YoY FCF growth (+37.0%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Net debt position ($0.5B)
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin28.0%
Net Margin1.1%
Operating CF Margin28.7%
CapEx Ratio0.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$543.0MNet debt position
Debt / FCF1.3xManageable debt load
Current Ratio1.35Adequate liquidity
Debt / Equity0.15Low leverage

Quarterly FCF Trend

+37.0% YoYImproving (+37.0%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameOkta, Inc.
SectorTechnology
Free Cash Flow$730.0M
Revenue$2.6B
Net Income$28.0M
Operating Cash Flow$750.0M
Capital Expenditure$20.0M
FCF Margin28.0%
Cash Conversion Rate—
Net Margin1.1%
Total Debt$952.0M
Total Cash$409.0M
Net Cash-$543.0M
Current Ratio1.35
Debt / Equity0.15
Debt / FCF1.3x
YoY FCF Growth+37.0%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJan 31, 2025
GradeA
Data SourceYahoo Finance