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.