Sprinklr Inc (CXM)

Cash ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022
Cash and cash equivalents	US$ in thousands	164,024	188,387	321,426
Short-term investments	US$ in thousands	—	—	—
Total current liabilities	US$ in thousands	508,160	458,899	395,050
Cash ratio		0.32	0.41	0.81

January 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($164,024K + $—K) ÷ $508,160K
= 0.32

The cash ratio measures a company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using available cash.

Sprinklr Inc's cash ratio has decreased from 0.81 in January 2022 to 0.32 in January 2024. This notable decline suggests a weakening ability to cover short-term liabilities with cash alone over the two-year period.

A ratio of 0.32 implies that for every $1 of short-term liabilities, Sprinklr Inc has $0.32 in cash and cash equivalents available. This indicates a potential liquidity risk as the company may not have sufficient cash on hand to meet its immediate obligations.

It is advisable for Sprinklr Inc to closely monitor its cash position and consider strategies to improve its liquidity, such as optimizing cash management practices or increasing cash reserves to enhance its ability to handle short-term financial obligations more effectively.