We’ve just added a new Quick Ratio metric!
Quick Ratio is the measurement of your company’s growth efficiency. How reliable can you grow revenue given your current churn rate?
To calculate your Quick Ratio you simply divide new MRR by lost MRR. The higher the ratio, the healthier the growth is at the company.
To put it in a formula:
Quick Ratio = (New MRR + Expansion MRR) / (Contraction MRR + Churned MRR)
You can read more about Quick Ratio, how it can be helpful for your company and a lot more in our Academy article on the topic.