Sprinklr Inc (CXM)

Payables turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021
Cost of revenue (ttm)	US$ in thousands	618,184	612,655	605,491	609,283	598,769	588,327	581,971	561,888
Payables	US$ in thousands	34,691	22,473	22,791	22,293	30,101	15,776	39,510	21,036	15,802	11,055	10,150
Payables turnover		17.82	27.26	26.57	27.33	19.89	37.29	14.73	26.71

January 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $618,184K ÷ $34,691K
= 17.82

The payables turnover ratio measures how efficiently a company is managing its trade credit payables. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of strong liquidity and good supplier relationships. Conversely, a lower ratio may suggest that the company is taking longer to pay its suppliers.

Analyzing the payables turnover ratio of Sprinklr Inc over the past several quarters, we can observe fluctuations in the ratio. In the latest period of January 31, 2024, the payables turnover ratio was 17.82, which is lower compared to the previous quarter at 27.26. This decrease could indicate that Sprinklr Inc took longer to pay its suppliers in the recent period.

Looking further back, we see a similar pattern of fluctuations in the payables turnover ratio. For example, in July 31, 2022, the ratio was 14.73, the lowest among the data presented. This suggests that Sprinklr Inc extended the time it took to pay its suppliers during that period.

On the other hand, in October 31, 2022, the payables turnover ratio spiked to 37.29, indicating that the company significantly improved its efficiency in managing trade credit payables during that quarter.

Overall, the payables turnover ratio of Sprinklr Inc has shown variability over the past several quarters, indicating changing dynamics in the company's supplier payment practices. This ratio provides valuable insights into how effectively Sprinklr Inc is managing its payables and their relationships with suppliers.