mrr-quick-ratio

name	mrr-quick-ratio
description	Compute the MRR Quick Ratio (new + expansion + reactivation) / (contraction + churn) and classify business growth quality as efficient, leaky, or accelerating. Use when the user asks about growth quality, quick ratio, MRR efficiency, or whether growth is healthy. Do NOT use for raw MRR amounts or ARR questions.
when_to_use	Trigger on: "quick ratio", "growth quality", "mrr efficiency", "is our growth healthy", "growth ratio", "expansion vs churn ratio", "growth quality score".
argument-hint	[period — e.g. 'last 6 months']

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"