SOCIETE NOUVELLE DES GARAGES DE CHAMPAGNE : revenue, balance sheet and financial ratios

In 2024, SOCIETE NOUVELLE DES GARAGES DE CHAMPAGNE achieves revenue of 1.5 M€. Activity remains stable over the period (CAGR: -2.6%). Vs 2023, growth of +17% (1.3 M€ -> 1.5 M€). After deducting consumption (1.0 M€), gross margin stands at 478 k€, i.e. a rate of 32%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 14 k€, representing 0.9% of revenue. Warning negative scissor effect: despite revenue change (+17%), EBITDA varies by -64%, reducing margin by 2.1 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 4 k€, i.e. 0.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 661%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 10%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 79.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 246.56. 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 58.8x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 40 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 12 days. The company must finance 28 days of gap between collections and payments. Inventory turnover is 71 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 98 days of revenue, i.e. 410 k€ to permanently finance.

Based on 148 transactions of similar company sales in 2024, the value of SOCIETE NOUVELLE DES GARAGES DE CHAMPAGNE is estimated at 86 074 € (range 38 502€ - 151 395€). With an EBITDA of 14 141€, 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.