Quick Ratio

Noun · Startup & VC

Definitions

  1. A financial ratio used in different contexts, often either as a liquidity measure in accounting or, in SaaS, as a shorthand comparing new and expansion revenue against churn and contraction. The specific formula matters because people mean different things by it.

    In plain English: A financial ratio used to judge short-term strength or SaaS revenue health, depending on context.

    Example: "The SaaS quick ratio looked strong because expansion more than offset churn."

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