SaaSOptics Blog

The Proper Use of the SaaS Quick Ratio

Posted by SaaSOptics
Aug 30, 2017 3:23:13 PM

Originally posted on The SaaS CFO.

Here at SaaSOptics, we talk a lot about SaaS financial performance metrics. Why? Because they provide you with the insight you need into your growing business. We're always looking for new metrics to evaluate the health and performance of a SaaS business.

The SaaS Quick Ratio, from The SaaS CFO, measures bookings growth versus bookings contractionWhy is this metric important? From the article: "MRR or ARR is everything to a subscription business. It keeps you going, so you need to know each month if you are net positive (recurring revenue will continue to increase) or net negative (expect recurring revenue to decrease)."

Check out the full article here and don't forget to download the sample formula sheet for your business.

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