OKTANEUTRAL

OKTA Return on Equity (ROE) Analysis

4.3%

Updated 950h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; OKTA’s 3.7% means it earns $3.70 per $100 of equity.

Sector Performance

22th percentile

OKTA

4.3%

Sector Median

13.2%

Sector Avg

16.4%

Prior Period

3.7%(Aug 2026)

↑ Improving
📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; OKTA’s 3.7% means it earns $3.70 per $100 of equity.

This sits well below the sector median of 13.4%, placing OKTA in the 19th percentile among peers, indicating weaker profitability relative to competitors. The trend data is not available: both the year-over-year change and quarter-over-quarter change are marked N/A, and historical values show only the current 3.7%, so no direction can be inferred. The combination of a low ROE with an unknown trend points to elevated uncertainty, as investors cannot assess whether this underperformance is improving or deteriorating. This metric contradicts a NEUTRAL verdict by highlighting a clear weakness, though the lack of trend data prevents a more bearish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about OKTA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

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OKTA

4.3%

Sector Median

13.2%

Sector Avg

16.4%

How OKTA's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.