Small auto repair shops turn just
a small profit
it comes to profits, small auto repair shops in the United States
aren't spinning their wheels, but they aren't running on rich fuel,
The country's 33,352 auto repair and service
shops with assets of less than $100,000 cross the line with almost
$17,000 in profits, according to the latest edition of the Almanac
of Business and Industrial Financial Ratios. In these shops,
annual revenues averaged $353,000.
Shops in this category spent the biggest chunk
of their revenues on basic operating costs (47.9 percent). Expenses
for raw materials and/or products for resale, direct labor costs,
rent, utilities and supplies are considered operating costs.
Other costs, which included repairs, bad debts,
contributions and advertising, accounted for the next largest category
of expense (21.2 percent). Payroll expenses averaged 13.3 percent.
Officers' compensation came in at 6.8 percent, so at a shop pulling
in the average $353,000 in revenues, that comes to $24,004.
On average, the shops had a current ratio of
1.8 to 1, and a quick ratio of 1.2 to 1. For an explanation of these
ratios, and interactive calculators to help you figure your own
business's ratios, see our new calculators
-- Posted: March 8, 2000