Analytics
Where is your money coming from — and where is it going? · Apr 2024 – Mar 2025
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Thalen Brief
Twelve months of data. Annual revenue of $851,400 — growing. Gross margin at 49% is 1pp below the full-service shop benchmark of 50%. Net income at $96,300 puts you at 11.3% net margin, below the 15% floor for independent shops. Best month was March at $81,600. Labor at 8.8% of revenue is lean — the margin gap is in parts pricing and declined job conversion, not in labor efficiency.
Total Revenue (12mo)
$851,400
+8.4% MoM most recent
Net Income (12mo)
$96,300
11.3% net margin
Gross Margin
49.0%
industry benchmark 50%
Best Month
$81,600
Mar 2025
Revenue + Margin Trend
Is your business growing? Are margins improving or shrinking?
Monthly Revenue vs. Net Income
Revenue vs. net income — month by month
Margin Waterfall
Where does revenue disappear between top line and bottom line?
Revenue
100%$81,600
minus Cost of Goods Sold (parts, fluids, shop supplies)−$41,616
Gross Profit
49.0%$39,984
minus Operating Expenses (labor, rent, insurance, marketing)−$13,056
Net Income
11.8%$9,590
Revenue breakdown
COGS 51.0%
OpEx 16.0%
Net 11.8%
Expense Breakdown
6 expense categories · ranked by annual spend · benchmarks: full-service auto repair industry
| Category | Annual Total | % of Revenue | vs Benchmark | Status |
|---|---|---|---|---|
Labor & Payroll | $74,880 | 8.8% | ~10% | ✓ Under target |
Parts & Supplies | $17,414 | 2.0% | ~3% | ✓ Under target |
Rent & Occupancy | $13,416 | 1.6% | ~2% | ✓ Under target |
Insurance | $8,736 | 1.0% | ~2% | ✓ Under target |
Marketing | $6,552 | 0.8% | ~2% | ✓ Under target |
Utilities | $4,226 | 0.5% | ~1% | ✓ Under target |
Benchmarks based on full-service independent auto repair industry averages. % of revenue = annual total ÷ $851,400.
Balance Sheet Snapshot
Assets
Current Assets
Cash & Checking$48,600
Parts Inventory$22,400
Accounts Receivable$8,200
Current Total$79,200
Fixed Assets
Lifts & Diagnostic Equipment$112,000
Leasehold Improvements$34,000
Vehicles & Tools$18,600
Total Assets$243,800
Liabilities & Equity
Current Liabilities
Accounts Payable (Parts)$14,200
Accrued Payroll$9,800
Sales Tax Payable$3,400
Current Total$27,400
Long-Term Liabilities
Equipment Loan$68,000
SBA Loan$42,000
Total Liabilities$137,400
Owner's Equity$106,400
Assets $243,800 − Liabilities $137,400 = Equity $106,400
Current Ratio
2.89x
Current assets ÷ current liabilities. Above 1.5 means healthy short-term liquidity. Industry floor is 1.0.
Net Equity
$106,400
Ask Thalen about these numbers
Why is my net margin below 15%? What's driving my parts cost? How do I improve gross margin?