SaaS Quick Ratio

Biological Parallel

A 2,000-year-old coast redwood still gains 1.5 tons of biomass annually—proof that growth-allocation can outpace senescence indefinitely when resource-allocation is optimized. This is the SaaS Quick Ratio in biological form: new revenue (photosynthesis) plus expansion (root network growth) divided by churn (leaf drop) plus contraction (branch death). An oak adding 50kg while losing 60kg to autumn senescence has a quick ratio below 1.0—it is dying. Redwoods sustain ratios above 4.0 for millennia through metabolic-scaling efficiencies that slash maintenance costs as they grow. The metric reveals whether your growth engine outpaces your decay engine. In biology and business, net growth is all that matters—gross is vanity.