Formula
Quick ratio = (new + reactivation + expansion)
÷ (contraction + churn)Worked example
Figures from the sample company in every trial. Northwind Analytics (sample), September 2026. A month with little churn produces a high ratio.
MRR gained = 460 + 0 + 13,201 = 13,661
MRR lost = 0 + 870 = 870
Quick ratio = 13,661 ÷ 870 = 15.7
Reading the ratio
A ratio of 4 means four dollars of MRR added for each dollar lost; below 1, MRR is shrinking. The same net growth can come from high gains offset by high losses or from modest gains with low losses. The ratio distinguishes the two.
Period
In a single month with very little churn the ratio becomes very large, and with no losses it is undefined. Calculate it over a quarter or a trailing twelve months for a stable reading.
Composition
Present the ratio with its components. A ratio driven by expansion from a few accounts carries concentration risk that one driven by many new customers does not.
How Revnewed calculates it
The quick ratio is calculated monthly from the bridge: new business, reactivation and expansion over contraction and churn, all at the prior month’s rates. It appears on the overview and in the monthly schedule.
Where a month has no losses, no ratio is shown.
Common misstatements
- Single-month readings
- One quiet month for churn can produce a ratio in double figures.
- Translation in gains
- Exchange-rate gains are not customer gains. Exclude FX impact.
- Confused with the liquidity ratio
- The accounting quick ratio compares liquid assets with current liabilities. Name the metric in full.