Manufacturing Financial Benchmarking Report
Benchmark your business against healthy ranges for the 12 financial KPIs that actually move a manufacturing company.
The benchmarks
Compare your numbers against typical ranges for mid-size manufacturers.
| Metric | Healthy | Warning |
|---|---|---|
| Gross margin | 30–40% | under 25% |
| EBITDA margin | 10–15% | under 8% |
| Current ratio | 1.5–2.0 | under 1.25 |
| Quick ratio | 1.0+ | under 1.0 |
| Debt-to-equity | 1.0–2.0 | over 3.0 |
| DSCR | 1.5x+ | under 1.25x |
| DSO | 30–45 days | over 60 days |
| DIO | 60–120 days | over 150 days |
| DPO | 30–45 days | over 60 days |
| Inventory turnover | 4–8x | under 3x |
How to read them
- Margin (gross, EBITDA) tells you whether the business model works
- Liquidity (current, quick) tells you whether you can pay the next 90 days
- Leverage (debt-to-equity, DSCR) tells you whether the balance sheet is safe
- Cash conversion (DSO, DIO, DPO) tells you how much cash the business ties up
The formulas
- Gross margin = (Revenue − COGS) / Revenue
- DSO = AR / (Revenue / 365)
- DIO = Inventory / (COGS / 365)
- DPO = AP / (COGS / 365)
- Cash conversion cycle = DIO + DSO − DPO
- DSCR = EBITDA / (principal + interest)
Your monthly dashboard
Group the dashboard into Profitability, Liquidity, Cash Conversion, and Debt — each metric next to its target and the prior month, with anything off-target flagged. Want this built and run for you every month? Book an intro call.