Sprinklr Inc (CXM)

Based on the provided solvency ratios of Sprinklr Inc, it appears that the company maintains a strong and consistent financial position with regard to its debt management and leverage:

1. Debt-to-assets ratio: The ratio indicates that Sprinklr Inc has no debt relative to its total assets over the five-year period. This implies that the company's assets are primarily financed through equity rather than debt, which can be a positive sign of financial stability.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio also remains at 0.00 throughout the period. This suggests that the company's capital structure is not reliant on debt financing, further reinforcing its financial stability.

3. Debt-to-equity ratio: The debt-to-equity ratio reflects the proportion of debt relative to equity in the company's capital structure. With a consistent ratio of 0.00 across all years, Sprinklr Inc shows that it has no debt in relation to its equity, indicating a conservative approach to financial leverage.

4. Financial leverage ratio: The financial leverage ratio provides insight into the company's level of financial leverage and risk. The decreasing trend in the ratio from 3.21 in 2021 to 1.93 in 2025 suggests that Sprinklr Inc has been reducing its dependence on debt to finance its operations, which generally lowers financial risk.

In summary, Sprinklr Inc's solvency ratios demonstrate a prudent and conservative approach to managing its financial obligations, with minimal to no debt in its capital structure over the five-year period. Additionally, the decreasing trend in the financial leverage ratio indicates improving financial strength and lower risk exposure.

---

Coverage ratios

Interest coverage ratio measures a company's ability to pay interest expenses on its debt obligations. A higher ratio indicates that the company is more capable of meeting its interest payments. Conversely, a lower ratio indicates a higher risk of default on interest payments.

Sprinklr Inc's interest coverage ratio has been consistently negative over the last few years. This signifies that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses.

In January 31, 2021, the interest coverage ratio was -2.97, indicating that the company's EBIT could cover only a portion of its interest expenses. This situation worsened by January 31, 2022, with a negative interest coverage ratio of -3.13, suggesting a further deterioration in the company's ability to cover interest costs.

The most recent data available for January 31, 2023, shows a significant decline in the interest coverage ratio to -15.39. This substantial negative ratio raises concern about Sprinklr Inc's financial health and ability to service its debt obligations.

The absence of data for January 31, 2024, and January 31, 2025, makes it challenging to assess the trend further. However, based on the available information, Sprinklr Inc's interest coverage ratio has shown a consistent decline, indicating increasing financial risk and potential challenges in meeting interest payments.

Overall, the persistently negative interest coverage ratios suggest that Sprinklr Inc may be facing financial difficulties in servicing its debt, and investors and creditors should closely monitor the company's financial performance and debt management strategies.