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Sorren Benchmark Report

Basalt Machine Works

Fresno, CA · NAICS 332710 Machine Shops

Tax year 2026
Prepared by Sarah Mitchell
Fresno, CA office
Section 1

Executive Summary

Basalt Machine Works generated $3,706,000 of revenue in 2026 with 24 employees, producing an EBITDA margin of -14.2% against a peer median of 2.5%. Compared with 107 similar businesses, performance is strongest in tax efficiency and warrants examination in profitability. Total benchmark variance across all categories is $1.69M.

Section 2

Company Snapshot

Revenue
$3.71M
Employees
24
Entity type
S Corporation
Years in business
34
Gross margin
28.1%
EBITDA margin
-14.2%
Net margin
-20.0%
Effective tax rate
0.0%
Section 3

Peer Group Definition

107 businessesNAICS 332710 — Machine ShopsCARevenue $1.9M–$5.9M12–34 employeesTax year 2026

Comparison sample size 107; NAICS 332710; revenue range $1.90M$5.90M; geographic filter CA. Data availability for this client: 92% 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 Sold71.9%61.2%55.0%
Gross Profit28.1%38.8%45.0%
Payroll22.2%18.7%16.6%
Benefits5.7%3.9%3.4%
Occupancy2.9%3.1%2.8%
Marketing0.7%0.8%0.9%
Insurance1.8%1.6%1.4%
Professional Fees0.7%0.8%0.7%
Administrative & Other5.5%4.8%4.2%
EBITDA-14.2%2.5%7.7%
Depreciation4.2%4.5%4.1%
Interest1.6%2.0%1.7%
Net Income-20.0%-3.9%1.1%
Section 5

Profitability and Operational Efficiency

Growth
7th
Profitability
5th
Labor Efficiency
37th
Operating Efficiency
22nd
Liquidity
63rd
Leverage
57th
Tax Efficiency
96th
Asset Efficiency
44th
Section 6

Balance Sheet

Current Ratio
3.40
median 3.32
Quick Ratio
2.12
median 2.20
Debt / EBITDA
810340.00
median 10.13
Debt / Equity
0.37
median 0.48
Days Sales Outstanding
39.69
median 48.10
Asset Turnover
1.09
median 1.09
Section 7

Tax Overview

Federal tax
$0
State tax
$0
Effective rate
0.0%
Section 179
$141,719
Owner compensation
$196,377
Owner distributions
$0
Retirement
$41,376
Capital expenditures
$292,610
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$3.71M+3.2%24.5%-16.4%26.5%
2023$3.83M+3.3%24.6%-16.4%26.5%
2024$3.53M-7.8%24.9%-16.2%26.6%
2025$3.89M+10.1%27.3%-14.7%27.6%
2026$3.71M-4.7%28.1%-14.2%27.9%
Section 9

Opportunities for Discussion

  • Revenue per Employee. Revenue per employee of $154K compares with a peer median of $192K. Is productivity constrained by capacity, mix, or pricing?Benchmark variance $892K
  • Gross Margin Variance. Gross margin of 28.1% compares with a peer median of 38.8%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $397K
  • Payroll Efficiency. Total labor cost represents 27.9% of revenue against a peer median of 22.3%. Is the staffing model carrying capacity for growth, or absorbing margin?Benchmark variance $205K
  • Operating Expense Load. Operating expenses run 42.4% of revenue versus a peer median of 37.2%. Which expense categories account for the difference?Benchmark variance $192K
  • Leverage Profile. Debt to EBITDA of 810340.00x compares with a peer median of 10.13x. Does the capital structure match the asset base and cash cycle?
  • Working Capital Position. Current ratio of 3.40 compares with an industry median of 3.32. How much liquidity headroom does the business need through its cycle?
  • Owner Compensation Structure. Owner compensation represents 5.3% of revenue compared with a 4.5% median for comparable entities. Should compensation strategy be reviewed with the tax team?
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.