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how to calculate SaaS quick ratio

informationalSoftware & SaaSAnalyzed 07/01/2025

AI Search Visibility Analysis

Analyze how brands appear across multiple AI search platforms for a specific query

Query Report Analysis Visualization
High Impact

Total Mentions

Total number of times a brand appears

across all AI platforms for this query

Reach

Platform Presence

Number of AI platforms where the brand

was mentioned for this query

Authority

Linkbacks

Number of times brand website was

linked in AI responses

Reputation

Sentiment

Overall emotional tone when brand is

mentioned (Positive/Neutral/Negative)

Brand Performance Across AI Platforms

3
Platforms Covered
3
Brands Found
0
Total Mentions
BRANDTOTAL MENTIONSPLATFORM PRESENCELINKBACKSSENTIMENTSCORE
1Baremetrics
0
2
95
2Mosaic
0
2
95
3Wall Street Prep
0
2
95
Referenced Domains Analysis
All 13 domains referenced across AI platforms for this query
ChatGPT
Perplexity
Google AIO
ChatGPT:
0
Perplexity:
1
Google AIO:
1
2
ChatGPT:
0
Perplexity:
1
Google AIO:
1
2
ChatGPT:
0
Perplexity:
1
Google AIO:
1
2
ChatGPT:
0
Perplexity:
0
Google AIO:
1
1
ChatGPT:
0
Perplexity:
0
Google AIO:
1
1
ChatGPT:
0
Perplexity:
1
Google AIO:
0
1
ChatGPT:
0
Perplexity:
0
Google AIO:
1
1
ChatGPT:
0
Perplexity:
1
Google AIO:
0
1
ChatGPT:
0
Perplexity:
1
Google AIO:
0
1
ChatGPT:
0
Perplexity:
1
Google AIO:
0
1
ChatGPT:
0
Perplexity:
1
Google AIO:
0
1
ChatGPT:
1
Perplexity:
0
Google AIO:
0
1
ChatGPT:
0
Perplexity:
0
Google AIO:
1
1

Strategic Insights & Recommendations

Dominant Brand

No specific brands were prominently featured across the responses, as all platforms focused on explaining the calculation methodology rather than recommending particular tools or services.

Platform Gap

All platforms provided consistent formulas and interpretations, with Perplexity offering the most comprehensive explanation and Google AIO providing the most step-by-step approach.

Link Opportunity

There's an opportunity to create content linking to SaaS analytics tools like Baremetrics, Mosaic, or ChargeBee that can automate quick ratio calculations.

Key Takeaways for This Query

The SaaS Quick Ratio formula is universally agreed upon: (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR).

A ratio above 4 is considered excellent, indicating efficient and sustainable growth for SaaS companies.

The metric can be calculated using either MRR or ARR depending on the business model's billing cycle.

Regular monitoring of this ratio helps SaaS companies assess growth efficiency and identify potential retention issues.

AI Search Engine Responses

Compare how different AI search engines respond to this query

ChatGPT

1981 Characters

SUMMARY

ChatGPT provides a comprehensive explanation of the SaaS Quick Ratio formula: (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). It includes a detailed example showing a ratio of 4.67 and explains interpretation guidelines: ratios below 1 indicate financial distress, 1-4 shows growth but inefficiency, and above 4 represents efficient growth. The response emphasizes that investors typically seek ratios of 4 or higher for sustainable growth.

Perplexity

1584 Characters

BRAND (3)

Baremetrics
Mosaic
Wall Street Prep

SUMMARY

Perplexity delivers a structured explanation of the SaaS Quick Ratio, presenting the same core formula but with more detailed component definitions. It provides a larger-scale example ($600,000 in gains vs $150,000 in losses = 4.0 ratio) and clear interpretation benchmarks. The response notes that MRR can be substituted with ARR for annual-based business models and emphasizes how this metric helps assess scaling efficiency.

Google AIO

1054 Characters

BRAND (3)

Baremetrics
Mosaic
Wall Street Prep

SUMMARY

Google AIO breaks down the SaaS Quick Ratio calculation into clear steps: calculate revenue inflows (New + Expansion MRR), calculate outflows (Churned + Contraction MRR), then divide inflows by outflows. It uses the same example as ChatGPT (4.67 ratio) and focuses on the practical application of the metric for evaluating growth efficiency in subscription businesses.

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