Mr Calcu | Saas Quick Ratio Calculator

Calculate SaaS Quick Ratio with ease, understand financial health and revenue retention

Saas Quick Ratio Calculator

Saas Quick Ratio Calculator Guidelines

  • Enter the new and expansion revenue in the respective fields.
  • Input the churn and contraction revenue.
  • Click 'Calculate' to get the SaaS Quick Ratio.
  • A higher ratio indicates better financial health.

Saas Quick Ratio Calculator Description

Understanding SaaS Quick Ratio

The SaaS Quick Ratio is a metric used to evaluate a company's financial health by comparing its revenue growth to its revenue churn. It's a crucial indicator for investors and stakeholders to assess the sustainability and scalability of a SaaS business.

The formula for calculating the SaaS Quick Ratio involves dividing the sum of revenue additions (new and expansion revenue) by the sum of revenue subtractions (churn and contraction revenue). A higher ratio indicates better financial health.

For example, if a company has $10,000 in new revenue, $5,000 in expansion revenue, $2,000 in churn revenue, and $1,000 in contraction revenue, the SaaS Quick Ratio would be (10,000 + 5,000) / (2,000 + 1,000) = 5. This means for every dollar lost, the company gained five dollars.

Example Calculation

New RevenueExpansion RevenueChurn RevenueContraction RevenueSaaS Quick Ratio
$10,000$5,000$2,000$1,0005
$8,000$3,000$1,500$5007.33

Frequently Asked Questions

A SaaS Quick Ratio of 4 or higher is generally considered good, indicating strong revenue growth relative to churn.

It's advisable to calculate your SaaS Quick Ratio monthly or quarterly to monitor your company's financial health closely.

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