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Sorren Benchmark Report

Pacific Industries

Tucson, AZ · NAICS 332710 Machine Shops

Tax year 2026
Prepared by Carlos Ellery
Tucson, AZ office
Section 1

Executive Summary

Pacific Industries generated $15,218,000 of revenue in 2026 with 72 employees, producing an EBITDA margin of -15.2% against a peer median of 1.9%. Compared with 68 similar businesses, performance is strongest in liquidity and warrants examination in growth. Total benchmark variance across all categories is $3.60M.

Section 2

Company Snapshot

Revenue
$15.22M
Employees
72
Entity type
LLC
Years in business
26
Gross margin
28.7%
EBITDA margin
-15.2%
Net margin
-21.2%
Effective tax rate
0.0%
Section 3

Peer Group Definition

68 businessesNAICS 332710 — Machine ShopsAZRevenue $7.6M–$24.3M36–101 employeesTax year 2026

Comparison sample size 68; NAICS 332710; revenue range $7.60M$24.30M; geographic filter AZ. Data availability for this client: 100% 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 Sold71.3%61.0%54.1%
Gross Profit28.7%39.0%45.9%
Payroll22.5%18.6%16.8%
Benefits4.4%3.9%3.5%
Occupancy3.8%2.9%2.7%
Marketing0.8%0.8%0.9%
Insurance2.0%1.5%1.4%
Professional Fees0.8%0.8%0.7%
Administrative & Other5.9%4.9%4.3%
EBITDA-15.2%1.9%8.5%
Depreciation4.2%4.6%4.1%
Interest1.9%2.0%1.8%
Net Income-21.2%-4.6%1.7%
Section 5

Profitability and Operational Efficiency

Growth
6th
Profitability
9th
Labor Efficiency
20th
Operating Efficiency
18th
Liquidity
78th
Leverage
35th
Tax Efficiency
75th
Asset Efficiency
35th
Section 6

Balance Sheet

Current Ratio
3.73
median 3.34
Quick Ratio
2.31
median 2.29
Debt / EBITDA
4077011.00
median 13.41
Debt / Equity
0.46
median 0.49
Days Sales Outstanding
49.01
median 49.59
Asset Turnover
1.05
median 1.06
Section 7

Tax Overview

Federal tax
$0
State tax
$0
Effective rate
0.0%
Section 179
$647,227
Owner compensation
$820,442
Owner distributions
$0
Retirement
$129,818
Capital expenditures
$1,205,199
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$13.68M+3.9%25.2%-17.4%25.6%
2023$14.55M+6.4%25.2%-17.3%25.6%
2024$15.27M+4.9%25.5%-17.1%25.7%
2025$15.80M+3.5%27.9%-15.6%26.6%
2026$15.22M-3.7%28.7%-15.2%26.9%
Section 9

Opportunities for Discussion

  • Gross Margin Variance. Gross margin of 28.7% compares with a peer median of 39.0%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $1.56M
  • Operating Expense Load. Operating expenses run 43.9% of revenue versus a peer median of 37.1%. Which expense categories account for the difference?Benchmark variance $1.03M
  • Payroll Efficiency. Total labor cost represents 26.9% of revenue against a peer median of 22.6%. Is the staffing model carrying capacity for growth, or absorbing margin?Benchmark variance $660K
  • Leverage Profile. Debt to EBITDA of 4077011.00x compares with a peer median of 13.41x. Does the capital structure match the asset base and cash cycle?
  • Revenue per Employee. Revenue per employee of $211K compares with a peer median of $216K. Is productivity constrained by capacity, mix, or pricing?Benchmark variance $354K
  • Owner Compensation Structure. Owner compensation represents 5.4% of revenue compared with a 4.5% median for comparable entities. Should compensation strategy be reviewed with the tax team?
  • Working Capital Position. Current ratio of 3.73 compares with an industry median of 3.34. How much liquidity headroom does the business need through its cycle?
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.