What is the saas quick ratio calculator?
Quick Ratio = (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR).
It compares your gains to your losses in the same period. A quick ratio of 4 means you're winning $4 for every $1 you lose.
Quick Ratio = (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR).
It compares your gains to your losses in the same period. A quick ratio of 4 means you're winning $4 for every $1 you lose.
Many SaaS companies have impressive top-line growth but simultaneously high leakage. Quick ratio surfaces that — even a fast-growing company with a quick ratio under 2 is a leaky bucket investors will quickly identify.
Most healthy growth-stage SaaS companies maintain quick ratios of 4 or higher. Top-decile companies often run above 8.
Quick ratio is a monthly metric. Quarterly aggregation hides timing.
Churn is full account loss. Contraction is downgrades within an account. They're different operating problems and should be tracked separately.
Single-month quick ratio is noisy. Watch a 3- or 6-month rolling average.
Quick ratio measures all change. NRR measures change in existing customers. Together they tell the full retention story.