OKTANEUTRAL

OKTA Return on Equity (ROE) Analysis

3.7%

Updated 299h 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

21th percentile

OKTA

3.7%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

3.4%(May 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.

Who are OKTA's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.