Concept · Startup & Growth Frameworks
SaaS Quick Ratio
Origin: Mamoon Hamid / Social Capital
Biological Parallel
SaaS Quick Ratio (new + expansion revenue / churned + contraction revenue) measures growth efficiency—whether you're adding biomass faster than you're losing it. Trees face this exact calculation: new growth from photosynthesis and nutrient uptake must exceed losses from leaf senescence, branch death, and herbivory. A tree with a quick ratio below 1.0 is dying; above 4.0 signals vigorous health. The metric reveals whether your growth engine outpaces your decay engine. In biology and business, net growth is all that matters—gross is vanity.