Sprinklr Inc (CXM)

Sprinklr Inc's current ratio has shown consistency over the past five years, ranging between 1.63 and 2.07. This indicates the company's ability to cover its short-term liabilities with its current assets. However, there was a slight dip in the current ratio in 2025 to 1.65, which could be a point of concern.

The quick ratio, which excludes inventory from current assets, has also exhibited a positive trend over the years, reaching a high of 1.37 in 2022. This suggests that Sprinklr Inc has a good ability to meet its short-term obligations with its most liquid assets, but the ratio dropped to 0.93 in 2025, potentially signaling a decrease in liquidity.

The cash ratio, which is the most conservative liquidity measure, mirrors the trend seen in the quick ratio, indicating the company's ability to cover short-term liabilities using only its cash and cash equivalents. Like the quick ratio, the cash ratio declined to 0.93 in 2025.

Overall, while Sprinklr Inc has generally maintained strong liquidity ratios over the years, the slight declines in the quick ratio and cash ratio in 2025 may warrant further investigation into the company's liquidity management.

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Additional liquidity measure

Sprinklr Inc's cash conversion cycle has shown a significant improvement over time. As of January 31, 2021, the company's cash conversion cycle stood at 185.84 days, indicating that it took the company approximately 185.84 days to convert its investments in inventory and other resources into cash flows from sales.

However, as of January 31, 2022, the cash conversion cycle decreased to 0.00 days, and this trend continued in subsequent years, with the cash conversion cycle remaining at 0.00 days for January 31, 2023, January 31, 2024, and January 31, 2025.

This substantial reduction in the cash conversion cycle signifies that Sprinklr Inc has improved its efficiency in managing its working capital and converting its resources into cash quickly. It suggests that the company has enhanced its inventory management, accounts receivable collection, and accounts payable processes, leading to a more streamlined cash flow cycle and potentially improved liquidity position.