ABIAN AUTOMOBILES & 4X4 : revenue, balance sheet and financial ratios

In 2024, ABIAN AUTOMOBILES & 4X4 achieves revenue of 4.4 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.4%. Vs 2023: +5%. After deducting consumption (3.1 M€), gross margin stands at 1.3 M€, i.e. a rate of 30%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 149 k€, representing 3.4% of revenue. Positive scissor effect: EBITDA margin improves by +2.8 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 85 k€, i.e. 1.9% 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 60%. 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 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 2.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 251.85. 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 5.7x. 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: 8 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 30 days. Favorable situation: supplier credit is longer than customer credit by 22 days. Inventory turnover is 50 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 50 days of revenue, i.e. 603 k€ to permanently finance. Over 2016-2024, WCR increased by +217%, requiring additional financing.

Based on 147 transactions of similar company sales in 2024, the value of ABIAN AUTOMOBILES & 4X4 is estimated at 946 156 € (range 487 133€ - 1 702 015€). With an EBITDA of 149 385€, the sector multiple of 5.5x is applied. The price/revenue ratio is 0.35x (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.