Sprinklr Inc (CXM)
Interest coverage
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 33,945 | -57,812 | -90,898 | -25,577 |
| Interest expense | US$ in thousands | — | — | 3,756 | 29,084 | 8,616 |
| Interest coverage | — | — | -15.39 | -3.13 | -2.97 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which may raise concerns about its financial health and ability to service its debt.
Based on the data provided for Sprinklr Inc:
- As of January 31, 2021, the interest coverage ratio was -2.97, indicating that the company's operating income was insufficient to cover its interest expenses by nearly 3 times. This suggests a significant strain on the company's finances in meeting its interest obligations.
- By January 31, 2022, the interest coverage ratio deteriorated further to -3.13, indicating a worsening situation where the company's operating income continued to fall short of covering its interest costs.
- As of January 31, 2023, there was a significant improvement in the interest coverage ratio to -15.39. While still negative, this suggests a substantial increase in operating income relative to interest expenses, potentially signaling a positive turn in the company's financial performance.
- The data for January 31, 2024, and January 31, 2025, where the interest coverage ratio is not provided (indicated by "—"), makes it challenging to assess the company's financial picture for those periods.
Overall, the historical trend of negative interest coverage ratios for Sprinklr Inc highlights potential financial challenges and the importance of monitoring the company's operating performance and debt management practices to ensure it can meet its interest payment obligations and sustain its operations effectively.
Peer comparison
Jan 31, 2025