GARAGE DE LA RONCE : revenue, balance sheet and financial ratios

In 2021, GARAGE DE LA RONCE achieves revenue of 10 k€. Revenue is declining over the period 2019-2021 (CAGR: -14.4%). Vs 2020, growth of +31% (8 k€ -> 10 k€). After deducting consumption (2 k€), gross margin stands at 8 k€, i.e. a rate of 77%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 5 k€, representing 46.5% of revenue. Positive scissor effect: EBITDA margin improves by +51.7 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 4 k€, i.e. 45.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -11%. 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 12%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Cash flow represents 45.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 47.97. 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 1.6x. Coverage is limited: any activity downturn would jeopardize interest payments.

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: 151 days. Excellent situation: suppliers finance 148 days of the operating cycle (retail model). Inventory turnover is 18 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-283 days): operations structurally generate cash.

Based on 135 transactions of similar company sales in 2021, the value of GARAGE DE LA RONCE is estimated at 14 267 € (range 5 778€ - 26 582€). With an EBITDA of 4 575€, the sector multiple of 3.8x is applied. The price/revenue ratio is 0.40x (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.