zoho MRR Quick Ratio
Compute MRR Quick Ratio and classify growth quality. A ratio > 4 is best-in-class; < 1 means the business is shrinking.
Setup
Resolve org ID via ZohoBilling_List_all_Organizations.
Default period: last 3 months.
Fetch (run in parallel)
| # | Tool | Purpose |
|---|---|---|
| 1 | ZohoBilling_Get_MRR_Quick_Ratio_Report |
Quick ratio for the period |
| 2 | ZohoBilling_Get_MRR_Insights_Report |
Component breakdown narrative |
| 3 | ZohoBilling_Get_Gross_MRR_Report |
Gross MRR for context |
| 4 | ZohoBilling_Get_Net_Revenue_Retention_Rate_Report |
NRR as corroborating signal |
Output
MRR Quick Ratio — [Period]
──────────────────────────────────────────
Quick Ratio: X.X
Classification: 🟢 Efficient (>4) | 🟡 Growing (2–4) | 🟠 Leaky (1–2) | 🔴 Shrinking (<1)
Inputs:
+ New MRR: $XX,XXX
+ Expansion MRR: $XX,XXX
+ Reactivation MRR: $XX,XXX
− Contraction MRR: $XX,XXX
− Churn MRR: $XX,XXX
NRR (corroborating): XXX%
──────────────────────────────────────────
Insight: [one sentence on the biggest ratio driver]
Classification bands:
| Ratio | Label | What it means |
|---|---|---|
| > 4 | 🟢 Efficient | Best-in-class — expansion far exceeds losses |
| 2–4 | 🟡 Growing | Healthy growth with manageable churn |
| 1–2 | 🟠 Leaky | Growing but churn is absorbing much of the gain |
| < 1 | 🔴 Shrinking | Losses exceed new revenue |
Constraints
- Formula: (New + Expansion + Reactivation) / (Contraction + Churn)
- If contraction + churn = 0, ratio is undefined — report as "N/A (no churn this period)"
- Propose-only: no write actions
Edge cases
- Ratio > 10: verify inputs — likely a data or date-range issue
- Ratio drops sharply MoM: flag "⚠ Quick Ratio declined — investigate churn spike or expansion slowdown"