ALLO AUTO LOCA DISCOUNT : revenue, balance sheet and financial ratios

In 2024, ALLO AUTO LOCA DISCOUNT achieves revenue of 1.3 M€. Revenue is growing positively over 8 years (CAGR: +1.6%). Vs 2023: +0%. After deducting consumption (3 k€), gross margin stands at 1.3 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 148 k€, representing 11.2% of revenue. Warning negative scissor effect: despite revenue change (+0%), EBITDA varies by -48%, reducing margin by 10.6 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 142 k€, i.e. 10.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 38%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 58%. 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 1.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 19.7% 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 279.22. 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 1.0x. 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: 49 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 47 days. The company must finance 2 days of gap between collections and payments. Overall, WCR represents 48 days of revenue, i.e. 176 k€ to permanently finance. Notable WCR improvement over the period (-67%), freeing up cash.

Based on 276 transactions of similar company sales (all years), the value of ALLO AUTO LOCA DISCOUNT is estimated at 2 158 293 € (range 404 400€ - 3 435 325€). With an EBITDA of 147 920€, the sector multiple of 11.9x is applied. The price/revenue ratio is 2.33x (premium 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.