OUTPUT FROM Benchmarker:

The bar chart visualizing your expenses compared to industry benchmarks for NAICS 4812 (2022) provided insight into several categories: Your cost of sales aligns closely with the industry benchmark, indicating effective cost management in this area. However, your expenses in wages and benefits are significantly higher than the industry average, which might suggest a higher investment in human resources or possibly overstaffing. Your spending on purchases, materials, and sub-contracts is close to the industry benchmark, indicating efficient use of materials and outsourcing. Conversely, your indirect operating expenses are higher than the industry average, which may indicate opportunities for cost-saving measures in general overhead. Additionally, your amortization and depletion costs are much lower than the industry benchmark, suggesting either less investment in long-term assets or different accounting practices.
 
The normalized radar (spider web) chart comparing your financial ratios with industry benchmarks highlighted several metrics: Your current ratio is higher than the industry benchmark, suggesting strong liquidity. Your debt to equity ratio is less negative than the industry average, indicating a relatively healthier balance between debt and equity. Your interest coverage ratio is better, showing that your business can comfortably cover its interest expenses. Your debt ratio is slightly lower than the industry average, indicating a conservative approach to leveraging. Your revenue to equity ratio is positive compared to the industry's negative average, highlighting efficient use of equity to generate revenue. Your gross margin is slightly better than the industry average, reflecting effective cost control in production. Your return on total assets is positive, in contrast to the industry's negative average, indicating efficient use of assets. Lastly, your collection period for accounts receivable is shorter than the industry average, suggesting effective credit management and faster cash flow from receivables.

Summary and Recommendations

• Wages and Benefits: Review and optimize staffing levels and compensation structures to align with industry standards.

• Operating Expenses (Indirect): Investigate areas for potential cost savings in overhead and indirect expenses.

• Amortization and Depletion: Evaluate your long-term asset investment strategy to ensure sustained growth and competitiveness.