Sprinklr Inc (CXM)

The current ratio for Sprinklr Inc has shown a slight improvement over the past three years, from 1.88 in 2023 to 1.97 in 2024, indicating the company's ability to cover its short-term obligations with its current assets has strengthened. However, the quick ratio has declined significantly from 0.40 in 2023 to 0.32 in 2024, which may suggest a decrease in the company's ability to meet its immediate liabilities without relying on inventory.

The cash ratio for Sprinklr Inc has remained stable at 0.32 in both 2023 and 2024, indicating that the company holds a consistent level of cash compared to its current liabilities. While the current ratio reflects a healthy liquidity position, the significant decrease in the quick ratio may raise concerns about the company's ability to swiftly cover its short-term obligations without relying on inventory.

Overall, the liquidity ratios suggest that while Sprinklr Inc has a strong ability to meet its current obligations with its current assets, there may be a need to monitor the company's quick ratio closely to ensure efficient management of short-term liquidity in the future.

---

Additional liquidity measure

The cash conversion cycle of Sprinklr Inc has exhibited a trend of improvement over the past three years. In January 2022, the company had a cash conversion cycle of -11.11 days, indicating that it was able to convert inventory into cash efficiently within a short period. This was followed by a further improvement in January 2023, with a cash conversion cycle of -18.34 days, demonstrating continued efficiency in managing working capital.

By January 2024, Sprinklr Inc had reduced its cash conversion cycle even further to -20.51 days, suggesting a commendable ability to streamline its operational processes and convert sales into cash promptly. A negative cash conversion cycle implies that the company is able to collect cash from customers before paying its suppliers, resulting in a favorable liquidity position.

Overall, the consistent decrease in the cash conversion cycle over the three-year period indicates that Sprinklr Inc has been effectively managing its working capital, enhancing its cash flow efficiency, and potentially improving its overall financial performance.