CEVENNES AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, CEVENNES AUTOMOBILES achieves revenue of 1.3 M€. Over the period 2021-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.4%. Vs 2023: +5%. After deducting consumption (898 k€), gross margin stands at 363 k€, i.e. a rate of 29%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 102 k€, representing 8.1% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 55 k€, i.e. 4.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 9%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 73%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 382.77. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.5x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 3 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 9 days. Favorable situation: supplier credit is longer than customer credit by 6 days. Inventory turnover is 72 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 48 days of revenue, i.e. 169 k€ to permanently finance. Over 2021-2024, WCR increased by +206%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of CEVENNES AUTOMOBILES is estimated at 171 674 € (range 73 780€ - 320 351€). With an EBITDA of 102 328€, the sector multiple of 1.6x is applied. The price/revenue ratio is 0.16x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.