Sprinklr Inc (CXM)

Payables turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022
Cost of revenue	US$ in thousands	617,384	598,904	519,273
Payables	US$ in thousands	34,691	30,101	15,802
Payables turnover		17.80	19.90	32.86

January 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $617,384K ÷ $34,691K
= 17.80

The payables turnover ratio reflects how effectively a company manages its accounts payable by measuring the number of times in a year that a company pays off its suppliers. A higher payables turnover ratio indicates that the company is able to pay off its suppliers more frequently within the year.

Analyzing Sprinklr Inc's payables turnover ratio over the past three years, we observe a decreasing trend. The payables turnover ratio decreased from 32.86 in January 2022 to 19.90 in January 2023, and further dropped to 17.80 in January 2024. This declining trend indicates that the company is taking longer to pay off its suppliers' invoices over the years.

A decreasing payables turnover ratio could suggest potential liquidity issues or challenges in managing the company's cash flows efficiently. This may lead to strained relationships with suppliers if payments are delayed, affecting the company's future ability to purchase goods and services on credit terms.

Investors and creditors may view a decreasing payables turnover ratio as a cause for concern, as it may indicate inefficiencies in the company's working capital management. It would be important for Sprinklr Inc to closely monitor and address the factors contributing to this declining trend to ensure healthy vendor relationships and sustainable financial performance.