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.