Sprinklr Inc (CXM)

Interest coverage

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	5,622	24,082	37,271	52,225	42,366	20,259	710	-35,832	-54,810	-76,020	-95,302	-103,116	-90,486	-76,091	-66,430	-34,809	-32,213	-29,653
Interest expense (ttm)	US$ in thousands	0	4,759	4,759	4,759	9,518	10,536	11,629	14,549	10,085	6,931	5,838	2,918	2,623	0	0	0	0	0
Interest coverage		—	5.06	7.83	10.97	4.45	1.92	0.06	-2.46	-5.43	-10.97	-16.32	-35.34	-34.50	—	—	—	—	—

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,622K ÷ $0K
= —

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments with operating income.

In the case of Sprinklr Inc, the interest coverage ratio was negative in the recent past, indicating that the company's operating income was not sufficient to cover its interest expenses. Specifically, the interest coverage ratio progressively improved from being very negative to positive over the period from January 31, 2022, to January 31, 2024.

As of January 31, 2024, the interest coverage ratio for Sprinklr Inc stood at 4.45, indicating that the company's operating income was 4.45 times its interest expenses. This improvement is a positive sign, suggesting that the company's financial health regarding its ability to cover interest payments has strengthened.

It is important for investors and stakeholders to monitor the trend of the interest coverage ratio over time as it provides insights into the company's ability to manage its debt and meet its financial obligations.