Quick Ratio (SaaS Growth)
The SaaS quick ratio measures the health of your recurring revenue by comparing what you gain against what you lose. You divide the new and expansion MRR you added in a period by the churned and contracted MRR you lost in the same period. A ratio of 4 means you gained four pounds of recurring revenue for every pound that walked out the door. Anything above 4 is considered strong, while a ratio near 1 means you are running hard just to stand still.
This is not the accounting quick ratio about liquidity; it is a growth-quality metric. For a founder it exposes a problem raw growth numbers hide: you might be adding new customers fast while quietly leaking just as many. A low quick ratio tells you to fix retention before chasing more acquisition, because pouring leads into a leaky bucket wastes money and masks the real issue.