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GLOSSARY

Quick ratio (SaaS)

Growth efficiency: new + expansion MRR divided by lost MRR.

Why it matters

Shows if you are adding revenue faster than losing it. Higher = healthier growth.

Benchmarks

Healthy SaaS: 4+ is strong; 2-4 is okay; < 2 suggests retention issues or slow growth.

Worked example

New MRR $20k; Expansion $8k; Churn $5k; Contraction $3k → Quick ratio = (20+8)/(5+3) = 3.5.

Common pitfalls

Ignoring contraction; comparing across different growth stages; not normalizing for seasonality.

How to show in your deck

Financials slide: quick ratio alongside NDR and churn.

Deck snippet

Quick ratio 3.5; adding $3.50 for every $1 lost.

Formulas

SaaS quick ratio
(New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

FAQs

Related terms

NDRChurn
K-factor (Viral coefficient)Burn multiple