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Sorren Benchmark Report

Tucson Industries

Tucson, AZ · NAICS 332710 Machine Shops

Tax year 2026
Prepared by Kevin Fletcher
Tucson, AZ office
Section 1

Executive Summary

Tucson Industries generated $8,924,000 of revenue in 2026 with 36 employees, producing an EBITDA margin of -16.2% against a peer median of 3.7%. Compared with 119 similar businesses, performance is strongest in tax efficiency and warrants examination in profitability. Total benchmark variance across all categories is $2.57M.

Section 2

Company Snapshot

Revenue
$8.92M
Employees
36
Entity type
Sole Proprietorship
Years in business
3
Gross margin
25.9%
EBITDA margin
-16.2%
Net margin
-23.4%
Effective tax rate
0.0%
Section 3

Peer Group Definition

119 businessesNAICS 332710 — Machine ShopsAZRevenue $4.5M–$14.3M18–51 employeesTax year 2026

Comparison sample size 119; NAICS 332710; revenue range $4.50M$14.30M; geographic filter AZ. Data availability for this client: 68% 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 Sold74.1%59.2%53.5%
Gross Profit25.9%40.8%46.5%
Payroll20.9%18.8%16.8%
Benefits5.4%3.9%3.4%
Occupancy2.7%3.1%2.7%
Marketing0.6%0.8%0.9%
Insurance1.8%1.6%1.4%
Professional Fees1.0%0.8%0.7%
Administrative & Other5.9%4.8%4.1%
EBITDA-16.2%3.7%10.1%
Depreciation5.2%4.5%4.1%
Interest2.1%2.0%1.7%
Net Income-23.4%-2.3%2.8%
Section 5

Profitability and Operational Efficiency

Growth
9th
Profitability
3rd
Labor Efficiency
37th
Operating Efficiency
20th
Liquidity
36th
Leverage
26th
Tax Efficiency
91st
Asset Efficiency
62nd
Section 6

Balance Sheet

Current Ratio
2.82
median 3.25
Quick Ratio
1.62
median 2.24
Debt / EBITDA
2649331.00
median 6.15
Debt / Equity
0.48
median 0.47
Days Sales Outstanding
37.07
median 47.06
Asset Turnover
0.97
median 1.07
Section 7

Tax Overview

Federal tax
$0
State tax
$0
Effective rate
0.0%
Section 179
$437,103
Owner compensation
$446,826
Owner distributions
$0
Retirement
$93,834
Capital expenditures
$872,064
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$7.61M+3.6%22.1%-18.6%25.0%
2023$7.68M+0.9%22.3%-18.5%25.0%
2024$8.43M+9.8%22.5%-18.4%25.1%
2025$9.19M+9.0%24.9%-16.8%26.0%
2026$8.92M-2.9%25.9%-16.2%26.3%
Section 9

Opportunities for Discussion

  • Gross Margin Variance. Gross margin of 25.9% compares with a peer median of 40.8%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $1.33M
  • Working Capital Position. Current ratio of 2.82 compares with an industry median of 3.25. How much liquidity headroom does the business need through its cycle?Benchmark variance $464K
  • Operating Expense Load. Operating expenses run 42.1% of revenue versus a peer median of 37.3%. Which expense categories account for the difference?Benchmark variance $429K
  • Payroll Efficiency. Total labor cost represents 26.3% of revenue against a peer median of 22.4%. Is the staffing model carrying capacity for growth, or absorbing margin?Benchmark variance $346K
  • Leverage Profile. Debt to EBITDA of 2649331.00x compares with a peer median of 6.15x. Does the capital structure match the asset base and cash cycle?
  • Owner Compensation Structure. Owner compensation represents 5.0% of revenue compared with a 4.5% median for comparable entities. Should compensation strategy be reviewed with the tax team?
  • Revenue per Employee. Revenue per employee of $248K compares with a peer median of $213K. 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.