How to calculate SaaS Quick Ratio

Formula

Quick ratio = (new MRR + expansion MRR) ÷ (churned MRR + contraction MRR)

SQL query

This example assumes: mrr_changes(month, change_type, amount) with positive amounts. It is written in PostgreSQL syntax; date functions differ slightly in MySQL, BigQuery and SQLite, and your column names will differ from these.

SELECT month,
       SUM(amount) FILTER (WHERE change_type IN ('new', 'expansion')) * 1.0
         / NULLIF(SUM(amount) FILTER (WHERE change_type IN ('churn', 'contraction')), 0) AS quick_ratio
FROM mrr_changes
GROUP BY month
ORDER BY month;

Common mistakes that make SaaS Quick Ratio wrong

• When losses are zero the ratio is undefined; show that rather than a huge number.
• Monthly ratios are noisy for small companies; use a quarter.
• Not related to the accounting quick (acid-test) ratio, despite the name.

Ask for SaaS Quick Ratio in plain English

Instead of writing the query yourself, you can type the question. SchemaChat turns it into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. It does not replace your judgement about the definition: check that the query matches the formula your business uses.

• What is our SaaS quick ratio by quarter?
• Is growth coming more from new customers or expansion?