Sprinklr Inc (CXM)
Cash conversion cycle
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — |
| Number of days of payables | days | 20.51 | 18.34 | 11.11 |
| Cash conversion cycle | days | -20.51 | -18.34 | -11.11 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 20.51
= -20.51
The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying suppliers, resulting in potential operational efficiency and cash flow generation.
Sprinklr Inc's cash conversion cycle has improved over the past three years, decreasing from -11.11 days in January 2022 to -20.51 days in January 2024. This indicates that the company has been able to manage its working capital more effectively, potentially by optimizing inventory levels, improving accounts receivable collections, and extending payment terms with suppliers.
The consistently negative cash conversion cycle suggests that Sprinklr Inc is efficiently managing its assets and liabilities, leading to quicker cash inflows compared to cash outflows. This efficiency can enhance the company's liquidity position and overall financial performance by reducing the need for external financing and improving cash flow predictability.
Overall, the trend of a decreasing cash conversion cycle for Sprinklr Inc highlights the company's ability to efficiently convert its resources into cash, indicating effective working capital management practices during the period under review.
Peer comparison
Jan 31, 2024