- advertisement -

Small auto repair shops turn just a small profit

Rules of ThumbWhen 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, either.

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.

- advertisement -

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 page.

Auto shop expenses

 

-- Posted: March 8, 2000

top of page
30 yr fixed mtg 4.26%
48 month new car loan 2.91%
1 yr CD 0.67%
Alerts
More good stuff
Small-business glossary
Small business archives
Find the best business account rates
Calculate your key business ratios
Business credit card rates
Business basics: easy guides to success
Economic statistics and interest rates
E-mail the SmallBiz Adviser
   
 
   
 
   
 
   
 
   
 
   
Checkup

Calculators
Current ratio calculator
Quick ratio calculator
Debt to assets ratio calculator
Return on assets calculator
Gross profit margin calculator

Operating profit percentage calculator

Buy our book
Your Financial Action Plan
Learn more
- advertisement -
 
- advertisement -