Measure how efficiently you're growing by comparing revenue gains to revenue losses
Calculate what you need to achieve your target Quick Ratio
Strategy: You can improve Quick Ratio by either (1) increasing new + expansion revenue, or (2) reducing churn + contraction. Most healthy SaaS companies target 4x or higher.
Track your Quick Ratio performance over time to identify trends
| Period | New + Expansion | Churn + Contraction | Quick Ratio | Trend |
|---|---|---|---|---|
| Q1 2024 | 2.8x | - | ||
| Q2 2024 | 3.3x | - | ||
| Q3 2024 | 3.8x | - | ||
| Q4 2024 | 4.5x | - |