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Grants Pass Equipment Company

Grants Pass, OR · NAICS 423830 Industrial Machinery and Equipment Wholesalers

Tax year 2026
Prepared by Michael Barlow
Medford, OR office
Section 1

Executive Summary

Grants Pass Equipment Company generated $18,037,000 of revenue in 2026 with 27 employees, producing an EBITDA margin of -1.4% against a peer median of 0.7%. Compared with 150 similar businesses, performance is strongest in growth and warrants examination in labor efficiency. Total benchmark variance across all categories is $1.24M.

Section 2

Company Snapshot

Revenue
$18.04M
Employees
27
Entity type
Sole Proprietorship
Years in business
37
Gross margin
27.9%
EBITDA margin
-1.4%
Net margin
-4.6%
Effective tax rate
0.0%
Section 3

Peer Group Definition

150 businessesNAICS 423830 — Industrial Machinery and Equipment WholesalersORRevenue $9.0M–$28.9M13–38 employeesTax year 2026

Comparison sample size 150; NAICS 423830; revenue range $9.00M$28.90M; geographic filter OR. Data availability for this client: 90% coverage across tax return, financial statements, payroll and employee records.

Section 4

Financial Performance

Line item (% revenue)CompanyPeer medianTop 25%
Revenue100.0%100.0%100.0%
Cost of Goods Sold72.1%72.1%63.6%
Gross Profit27.9%27.9%36.4%
Payroll14.5%12.8%11.1%
Benefits1.8%1.9%1.6%
Occupancy2.9%2.4%2.2%
Marketing1.0%0.9%1.0%
Insurance0.9%0.9%0.8%
Professional Fees0.8%0.7%0.6%
Administrative & Other4.7%4.9%4.4%
EBITDA-1.4%0.7%10.2%
Depreciation1.7%1.4%1.3%
Interest1.6%2.0%1.7%
Net Income-4.6%-2.6%5.4%
Section 5

Profitability and Operational Efficiency

Growth
96th
Profitability
45th
Labor Efficiency
34th
Operating Efficiency
37th
Liquidity
55th
Leverage
58th
Tax Efficiency
65th
Asset Efficiency
52nd
Section 6

Balance Sheet

Current Ratio
2.84
median 3.04
Quick Ratio
1.77
median 1.82
Debt / EBITDA
3978592.00
median 36.78
Debt / Equity
0.61
median 1.18
Days Sales Outstanding
58.70
median 52.61
Asset Turnover
1.38
median 1.57
Section 7

Tax Overview

Federal tax
$0
State tax
$0
Effective rate
0.0%
Section 179
$359,407
Owner compensation
$705,814
Owner distributions
$0
Retirement
$88,431
Capital expenditures
$787,615
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$13.68M+1.3%24.7%-3.9%15.6%
2023$14.26M+4.3%24.3%-4.1%15.5%
2024$15.02M+5.4%25.3%-3.4%15.7%
2025$16.44M+9.4%27.7%-1.5%16.3%
2026$18.04M+9.7%27.9%-1.4%16.3%
Section 9

Opportunities for Discussion

  • Working Capital Position. Current ratio of 2.84 compares with an industry median of 3.04. How much liquidity headroom does the business need through its cycle?Benchmark variance $532K
  • Operating Expense Load. Operating expenses run 29.2% of revenue versus a peer median of 26.9%. Which expense categories account for the difference?Benchmark variance $426K
  • Payroll Efficiency. Total labor cost represents 16.3% of revenue against a peer median of 14.8%. Is the staffing model carrying capacity for growth, or absorbing margin?Benchmark variance $269K
  • Leverage Profile. Debt to EBITDA of 3978592.00x compares with a peer median of 36.78x. Does the capital structure match the asset base and cash cycle?
  • Gross Margin Variance. Gross margin of 27.9% compares with a peer median of 27.9%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $12K
  • Owner Compensation Structure. Owner compensation represents 3.9% of revenue compared with a 3.5% median for comparable entities. Should compensation strategy be reviewed with the tax team?
  • Revenue per Employee. Revenue per employee of $668K compares with a peer median of $547K. Is productivity constrained by capacity, mix, or pricing?
Section 10

Advisor Notes

Section 11

Methodology

Sorren Benchmark aggregates anonymized financial, tax, payroll and operational data across 60,000 businesses. Peer statistics report count, mean, median, 10th, 25th, 75th and 90th percentiles and standard deviation. Comparisons use normalized ratios rather than raw dollars. Statistics are released only where a cohort contains at least 10 businesses, and individual peer companies are never displayed. Benchmark variance expresses the mathematical difference between this company and its peer median; it is not a projection of savings, nor tax or investment advice.