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SaaS Quick Ratio

Ratio of new+expansion revenue to churn+contraction.

Quick ratio measures how efficiently a SaaS grows despite churn. Above 4 is excellent; under 1 means churn is eating new revenue. Popular with growth-stage investors because it captures gross efficiency in a single number.

Formula

Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

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