Sprinklr Inc (CXM)

Fixed asset turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022
Revenue	US$ in thousands	732,360	618,190	489,128
Property, plant and equipment	US$ in thousands	32,176	22,885	14,705
Fixed asset turnover		22.76	27.01	33.26

January 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $732,360K ÷ $32,176K
= 22.76

Fixed asset turnover is a financial ratio that indicates how efficiently a company is utilizing its fixed assets to generate revenue. The higher the ratio, the more effectively the company is using its fixed assets to generate sales.

In the case of Sprinklr Inc, the fixed asset turnover ratio has decreased from 33.26 in January 2022 to 22.76 in January 2024. This decline could indicate either a decrease in revenue generated by the utilization of fixed assets or an increase in the carrying value of fixed assets on the balance sheet.

It is important for Sprinklr Inc to further analyze the reasons behind this decrease in fixed asset turnover to determine the root cause and take appropriate actions to improve efficiency in utilizing fixed assets. By enhancing the productivity of fixed assets, the company can potentially boost revenue generation and overall profitability.