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Sorren Benchmark Report

Meridian Precision Manufacturing

Rio Rancho, NM · NAICS 332710 Machine Shops

Tax year 2026
Prepared by Grace Byrne
Albuquerque, NM office
Section 1

Executive Summary

Meridian Precision Manufacturing generated $3,855,000 of revenue in 2026 with 15 employees, producing an EBITDA margin of -16.4% against a peer median of 0.5%. Compared with 10 similar businesses, performance is strongest in liquidity and warrants examination in growth. Total benchmark variance across all categories is $706K.

Section 2

Company Snapshot

Revenue
$3.85M
Employees
15
Entity type
Sole Proprietorship
Years in business
4
Gross margin
24.3%
EBITDA margin
-16.4%
Net margin
-22.4%
Effective tax rate
0.0%
Section 3

Peer Group Definition

10 businessesNAICS 332710 — Machine ShopsNMRevenue $1.9M–$6.2M7–21 employeesTax year 2026

Comparison sample size 10; NAICS 332710; revenue range $1.90M$6.20M; geographic filter NM. Data availability for this client: 97% 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 Sold75.7%63.0%59.0%
Gross Profit24.3%37.0%41.0%
Payroll20.2%19.0%15.6%
Benefits4.9%3.7%3.5%
Occupancy3.3%3.1%2.9%
Marketing1.0%0.8%0.8%
Insurance1.9%1.6%1.4%
Professional Fees0.6%0.8%0.7%
Administrative & Other5.6%4.8%4.3%
EBITDA-16.4%0.5%5.9%
Depreciation4.2%4.5%4.4%
Interest1.7%1.7%1.7%
Net Income-22.4%-6.4%-0.1%
Section 5

Profitability and Operational Efficiency

Growth
1st
Profitability
1st
Labor Efficiency
40th
Operating Efficiency
38th
Liquidity
85th
Leverage
55th
Tax Efficiency
80th
Asset Efficiency
12th
Section 6

Balance Sheet

Current Ratio
4.05
median 3.51
Quick Ratio
2.57
median 2.30
Debt / EBITDA
935146.00
median 55.87
Debt / Equity
0.38
median 0.41
Days Sales Outstanding
57.07
median 45.86
Asset Turnover
1.01
median 1.09
Section 7

Tax Overview

Federal tax
$0
State tax
$0
Effective rate
0.0%
Section 179
$160,520
Owner compensation
$186,544
Owner distributions
$0
Retirement
$36,903
Capital expenditures
$307,201
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$3.58M+1.4%20.3%-19.1%23.8%
2023$3.86M+7.7%20.6%-18.9%23.9%
2024$3.90M+1.0%20.7%-18.8%23.9%
2025$4.08M+4.6%23.1%-17.2%24.8%
2026$3.85M-5.5%24.3%-16.4%25.1%
Section 9

Opportunities for Discussion

  • Gross Margin Variance. Gross margin of 24.3% compares with a peer median of 37.0%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $491K
  • Operating Expense Load. Operating expenses run 40.7% of revenue versus a peer median of 37.9%. Which expense categories account for the difference?Benchmark variance $107K
  • Leverage Profile. Debt to EBITDA of 935146.00x compares with a peer median of 55.87x. Does the capital structure match the asset base and cash cycle?
  • Payroll Efficiency. Total labor cost represents 25.1% of revenue against a peer median of 22.6%. Is the staffing model carrying capacity for growth, or absorbing margin?Benchmark variance $97K
  • Owner Compensation Structure. Owner compensation represents 4.8% of revenue compared with a 4.5% median for comparable entities. Should compensation strategy be reviewed with the tax team?Benchmark variance $11K
  • Revenue per Employee. Revenue per employee of $257K compares with a peer median of $236K. Is productivity constrained by capacity, mix, or pricing?
  • Working Capital Position. Current ratio of 4.05 compares with an industry median of 3.51. 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.