Sprinklr Inc (CXM)

The liquidity ratios of Sprinklr Inc provide insights into the company's ability to meet its short-term financial obligations.

1. Current Ratio:
- The current ratio measures the company's ability to pay off its short-term liabilities with its current assets.
- The ratio has fluctuated over the past eight quarters, ranging from 1.88 to 2.48, with an average of approximately 2.08.
- A current ratio above 1 indicates that the company has more current assets than current liabilities, which is favorable for meeting short-term obligations.
- The current ratio has generally been above 2, indicating a strong liquidity position and ability to cover short-term obligations comfortably.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- The quick ratio has fluctuated between 0.32 and 1.67 over the past eight quarters, with an average of approximately 0.64.
- A quick ratio of 1 or higher is typically considered healthy, as it shows the company can meet its short-term liabilities without relying on selling inventory.
- The quick ratio has shown some volatility, indicating fluctuations in the company's ability to cover immediate obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio is the most conservative liquidity measure, focusing solely on the company's ability to cover short-term liabilities with cash and cash equivalents.
- The cash ratio has ranged from 0.32 to 1.68 over the past eight quarters, with an average of approximately 0.77.
- A cash ratio of 1 or higher indicates that the company has sufficient cash on hand to cover its short-term liabilities.
- The cash ratio has shown some variability, reflecting fluctuations in the company's cash position and its ability to meet immediate obligations without relying on other current assets.

Overall, Sprinklr Inc has demonstrated a strong liquidity position based on its current, quick, and cash ratios over the analyzed period. The ratios have generally been above industry averages, indicating the company's capacity to meet short-term financial obligations efficiently.

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Additional liquidity measure

The cash conversion cycle of Sprinklr Inc has been showing a pattern of fluctuation over the past few quarters. The cycle represents the length of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The company's cash conversion cycle was negative for all the periods provided, indicating that Sprinklr Inc's operations are efficient in terms of managing cash flows. A negative cash conversion cycle means that the company is able to collect cash from customers before having to pay its suppliers, resulting in a strong cash position.

The trend shows that the cash conversion cycle has varied between -9.79 days to -24.78 days over the past few quarters. The more negative the cash conversion cycle, the faster the company is able to generate cash from its operations.

Overall, the consistently negative cash conversion cycle reflects that Sprinklr Inc is effectively managing its working capital and operations, allowing for rapid cash generation and efficient use of resources.