Sprinklr Inc (CXM)
Quick ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 164,024 | 188,387 | 321,426 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | -1,739 | -3,156 | -2,700 |
| Total current liabilities | US$ in thousands | 508,160 | 458,899 | 395,050 |
| Quick ratio | 0.32 | 0.40 | 0.81 |
January 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($164,024K
+ $—K
+ $-1,739K)
÷ $508,160K
= 0.32
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher ratio indicates a stronger ability to cover short-term liabilities.
Sprinklr Inc's quick ratio has been fluctuating over the past three years. As of January 31, 2024, the quick ratio stands at 0.32, which is significantly lower compared to the previous two years (0.40 in 2023 and 0.81 in 2022). This decreasing trend may raise concerns about the company's short-term liquidity position.
A quick ratio of 0.32 means that for every dollar of current liabilities, Sprinklr Inc has $0.32 in highly liquid assets available to cover those obligations. This implies a potential liquidity strain, as the company may struggle to meet its short-term obligations using its quick assets alone.
Further analysis is warranted to understand the factors contributing to the decline in the quick ratio and to assess the potential implications for the company's financial health and ability to manage short-term obligations effectively.
Peer comparison
Jan 31, 2024