Quick Ratio — SaaS Quick Ratio

Definition: New + expansion MRR divided by churned + contracted MRR. A quick ratio above 4 means you're adding revenue four times faster than you're losing it — a sign of durable momentum.

Example

In board meetings, you'll often hear something like: "Let's pull the latest Quick Ratio numbers before we make a call" — shorthand for saas quick ratio.

When you'll hear it

Quick Ratio shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to saas quick ratio — and they expect the room to already know what that means.

FAQs

What does Quick Ratio stand for?

Quick Ratio stands for SaaS Quick Ratio.

What does Quick Ratio mean in business and finance?

New + expansion MRR divided by churned + contracted MRR. A quick ratio above 4 means you're adding revenue four times faster than you're losing it — a sign of durable momentum.

Where will I hear Quick Ratio used at work?

Quick Ratio comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for saas quick ratio, so people assume you already know the term.

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