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SaaS Quick Ratio

·article·2026-06-12

SaaS Quick Ratio

Definition

Growth efficiency: gross MRR gains divided by gross MRR losses.

Formula

Quick ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

Worked Example

New $5,400 + Expansion $4,000 = $9,400 gained
Churned $2,200 + Contraction $1,500 = $3,700 lost

Quick ratio = 2.5    (>= 4 is the classic early-stage bar)

Interpretation & Pitfalls

A quick ratio of 2.5 means growing $2.50 gross for every $1 lost — net growth exists but churn is taxing it heavily.

In TupicFinance

All four MRR-bridge components are tracked, so the quick ratio is automatic.

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