Sprinklr Inc (CXM)

Quick ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash	US$ in thousands	145,270	164,024	188,387	321,426	68,037
Short-term investments	US$ in thousands	338,189	498,531	390,239	210,983	212,652
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	517,583	508,160	458,899	388,403	301,564
Quick ratio		0.93	1.30	1.26	1.37	0.93

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($145,270K + $338,189K + $—K) ÷ $517,583K
= 0.93

The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term obligations, while a ratio above 1 suggests that the company can cover its current liabilities with its quick assets.

Analyzing Sprinklr Inc's quick ratio from January 31, 2021, to January 31, 2025, reveals fluctuations in the company's liquidity position. The quick ratio was 0.93 on January 31, 2021, indicating that Sprinklr may have struggled to meet its short-term obligations with its liquid assets at that time.

However, by January 31, 2022, the quick ratio improved significantly to 1.37, surpassing the ideal threshold of 1. This suggests that Sprinklr had increased its ability to cover its short-term liabilities with its quick assets, reflecting a more favorable liquidity position.

Subsequent years saw slight variations in the quick ratio, with values of 1.26 on January 31, 2023, 1.30 on January 31, 2024, and a decrease back to 0.93 on January 31, 2025. While the ratios remained above 1 in most years, the decrease in 2025 may indicate a potential decrease in liquidity compared to the previous year.

Overall, the trend in Sprinklr Inc's quick ratio shows fluctuations in its liquidity position over the years, highlighting the importance of regularly monitoring and managing short-term liquidity to ensure the company can meet its financial obligations efficiently.