Glossary

Glossary

Glossary

SaaS Quick Ratio

SaaS Quick Ratio

SaaS Quick Ratio

Definition

Measures the growth efficiency of a SaaS company by comparing the rate of revenue growth to revenue churn. It is calculated by dividing the sum of new and expansion MRR by the sum of churned and contracted MRR. A higher quick ratio indicates better growth efficiency.

Measures the growth efficiency of a SaaS company by comparing the rate of revenue growth to revenue churn. It is calculated by dividing the sum of new and expansion MRR by the sum of churned and contracted MRR. A higher quick ratio indicates better growth efficiency.

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