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Sorren Benchmark Report

Bozeman Machine Works

Bozeman, MT · NAICS 332710 Machine Shops

Tax year 2026
Prepared by Nina Rosenthal
Billings, MT office
Section 1

Executive Summary

Bozeman Machine Works generated $8,290,000 of revenue in 2026 with 35 employees, producing an EBITDA margin of -14.3% against a peer median of 0.3%. Compared with 26 similar businesses, performance is strongest in tax efficiency and warrants examination in growth. Total benchmark variance across all categories is $1.38M.

Section 2

Company Snapshot

Revenue
$8.29M
Employees
35
Entity type
LLC
Years in business
43
Gross margin
28.4%
EBITDA margin
-14.3%
Net margin
-20.4%
Effective tax rate
0.0%
Section 3

Peer Group Definition

26 businessesNAICS 332710 — Machine ShopsMTRevenue $4.1M–$13.3M17–49 employeesTax year 2026

Comparison sample size 26; NAICS 332710; revenue range $4.10M$13.30M; geographic filter MT. Data availability for this client: 73% 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 Sold71.6%64.1%55.8%
Gross Profit28.4%35.9%44.2%
Payroll22.4%19.2%17.2%
Benefits4.8%4.2%3.6%
Occupancy3.4%3.2%2.9%
Marketing0.8%0.8%0.8%
Insurance1.9%1.6%1.4%
Professional Fees1.0%0.9%0.7%
Administrative & Other5.1%4.7%4.2%
EBITDA-14.3%0.3%4.8%
Depreciation4.1%4.5%3.9%
Interest2.1%2.0%1.7%
Net Income-20.4%-6.7%-1.4%
Section 5

Profitability and Operational Efficiency

Growth
4th
Profitability
10th
Labor Efficiency
22nd
Operating Efficiency
33rd
Liquidity
56th
Leverage
25th
Tax Efficiency
77th
Asset Efficiency
40th
Section 6

Balance Sheet

Current Ratio
3.10
median 3.16
Quick Ratio
1.87
median 2.00
Debt / EBITDA
2407756.00
median 136.90
Debt / Equity
0.57
median 0.54
Days Sales Outstanding
48.97
median 46.24
Asset Turnover
1.09
median 1.08
Section 7

Tax Overview

Federal tax
$0
State tax
$0
Effective rate
0.0%
Section 179
$333,751
Owner compensation
$444,610
Owner distributions
$0
Retirement
$77,185
Capital expenditures
$644,961
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$7.38M+5.4%24.8%-16.5%25.8%
2023$8.09M+9.6%24.9%-16.4%25.9%
2024$8.42M+4.1%25.2%-16.2%26.0%
2025$8.89M+5.6%27.6%-14.8%26.9%
2026$8.29M-6.7%28.4%-14.3%27.2%
Section 9

Opportunities for Discussion

  • Gross Margin Variance. Gross margin of 28.4% compares with a peer median of 35.9%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $617K
  • Operating Expense Load. Operating expenses run 42.7% of revenue versus a peer median of 37.6%. Which expense categories account for the difference?Benchmark variance $418K
  • Payroll Efficiency. Total labor cost represents 27.2% of revenue against a peer median of 23.7%. Is the staffing model carrying capacity for growth, or absorbing margin?Benchmark variance $290K
  • Leverage Profile. Debt to EBITDA of 2407756.00x compares with a peer median of 136.90x. Does the capital structure match the asset base and cash cycle?
  • Working Capital Position. Current ratio of 3.10 compares with an industry median of 3.16. How much liquidity headroom does the business need through its cycle?Benchmark variance $52K
  • Revenue per Employee. Revenue per employee of $237K compares with a peer median of $202K. Is productivity constrained by capacity, mix, or pricing?
  • Owner Compensation Structure. Owner compensation represents 5.4% of revenue compared with a 4.6% 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.