FINANCIAL BENCHMARK

Auto Parts Manufacturers

How do you stack up?
Here are average values of common financial benchmarks for US auto parts manufacturers and all manufacturing firms. This data is for 2020-21 and comes from the
Risk Management Association and Powerlytics, Inc.
It is based on a sample of 218 auto parts manufacturers and 9439
manufacturing firms.

CASH LIQUIDITY
Auto Parts Manufactur… All Manufacturers
2
1.81 Sales to OEMs and aftermarket customers are somewhat seasonal, and
cash flow can be irregular.

1.22
Current Ratio = Current Assets/Current Liabilities
1 Quick Ratio = (Cash + AR)/Current Liabilities
0.98
0.72

0
Current Ratio Quick Ratio

WORKING CAPITAL MANAGEMENT

Auto Parts Manufactur… All Manufacturers
75
70 Inventory levels are slightly lower than average, as auto parts
manufacturers implement lean manufacturing techniques.
50 52
46 47 Days Receivables = 365 x Accounts Receivable/Revenue
43 Days Inventory = 365 x Inventory/Cost of Sales
34 Days Payable = 365 x Payables/Cost of Sales
25

0
Days Receivables Days Inventory Days Payable

PROFITABILITY
Auto Parts Manufactur… All Manufacturers
40
The combination of low margins and high overhead makes most auto
33.15 parts manufacturers volume-dependent and vulnerable to variability in
demand.
20 23.34 Gross Margin % = (Operating Expenses + Operating Income)/Revenue
Operating Income % = Operating Income/Revenue
4.43 5.26
3.01
Pre Tax Return on Assets % = (Pre-tax Net Income/Total Assets)
8.65
0
Gross Margin % Operating Income % Pre Tax Return on
Assets %