Quick ratio

The Quick Ratio report (also known as SaaS Quick Ratio) is a measure of your business's growth efficiency. It quantifies how effectively you are adding recurring revenue compared to the amount of recurring revenue you are losing.

A Quick Ratio of above 1.0 indicates that you are adding more revenue than you are losing, signaling sustainable growth. A ratio below 1.0 suggests that revenue loss is outpacing gains, which may require immediate attention to retention and acquisition efforts.

The Quick Ratio is calculated by summing all positive MRR movements (New and Expansion) and dividing them by the sum of all negative MRR movements (Contraction and Churn).

$$\text{Quick Ratio} = \frac{\text{New MRR} + \text{Expansion MRR}}{\text{Contraction MRR} + \text{Churn MRR}}$$

Note on Reactivation: Reactivation MRR is typically excluded from the Quick Ratio calculation as it represents recovered revenue, not net new growth, allowing the ratio to focus purely on the efficiency of your core acquisition and retention funnel.

Overview

The Quick Ratio report includes a timeline chart, a breakdown table, and optionally a detail table.

Timeline chart

The timeline chart shows your calculated Quick Ratio over the selected period.

• If the ratio is above 1.0, the chart line is rendered in green on a green background.
• If the ratio is at or below 1.0, the chart line is rendered in red on a red background.

If you hover the chart, you'll see a tooltip displaying the key components (Gained MRR and Lost MRR) used in the ratio calculation for that specific period. The currently ongoing period is marked as a dashed line.

Breakdown table

The table underneath the chart breaks down the revenue movements into their constituent parts and shows the final Quick Ratio.

Each cell in the Amount and Customers columns for New, Expansion, Contraction, and Churn shows two numbers—an amount and a unique customer count. Green customer numbers indicate positive MRR movements (New, Expansion), and red customer numbers indicate negative MRR movements (Contraction, Churn).

If you click a cell showing a customer count, a detail table under the breakdown table is revealed, showing all MRR movements in the selected period and type.

Detail table

This table is shown when you click a customer count cell in the breakdown table. The table shows each individual MRR movement contributing to the selected cell (e.g., all Expansion movements in that period). You see the date, customer name/email, the description of the MRR movement, the type, and the MRR change.

Clicking the customer sends you to that customer's detail page.

Filters

The report supports a wide range of filters to help you isolate specific segments and analyze growth efficiency. These include:

• Date range

  Select a custom range or preset periods (last 30 days, last quarter, etc.)

• Interval

  Choose how the Quick Ratio is aggregated: daily, weekly, monthly, quarterly, or yearly.

• Currency Select your reporting currency. When switching currency, the MRR components are recalculated using daily historical exchange rates.

• Additional filters – plan, region/country, acquisition channel, customer age, etc. (see all filters)

Filters are applied to both the chart and the table simultaneously.

Exporting the data

You can export the table as a CSV file for offline analysis or reporting by clicking the "Export" icon next to the date picker.

Practical tips

• Target a High Ratio: Ideally, a SaaS business should aim for a Quick Ratio consistently above 3.0, indicating strong, resilient growth.
• Diagnose the Problem: If the Quick Ratio is low (near or below 1.0), look at the Lost MRR and Gained MRR components in the breakdown table to diagnose the issue: Are your acquisition/upsell efforts stalling (low Gained MRR), or are retention issues spiking (high Lost MRR)?
• Segment for Action: Use Additional filters to check the Quick Ratio for specific product lines or regions. You may find that while your overall ratio is healthy, a particular segment has a ratio below 1.0, highlighting a specific area for immediate retention focus.