What is the Optimal Quick Ratio for Your SaaS Startup?
Tom Tunguz
NOVEMBER 2, 2015
What is the optimal quick ratio for your SaaS startup? Is it 4? Quick Ratio = (New MRR + Expansion MRR) /. (Churned MRR + Contraction MRR). The quick ratio measures a SaaS company’s growth efficiency. The formula for quick ratio is above. It’s the new monthly recurring revenue (MRR) in a month plus the expansion MRR divided by the sum of the churned MRR and the contraction MRR.
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