APPRO CARS : revenue, balance sheet and financial ratios

In 2021, APPRO CARS achieves revenue of 421 k€. Over the period 2017-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +27.2%. Significant drop of -10% vs 2020. After deducting consumption (366 k€), gross margin stands at 55 k€, i.e. a rate of 13%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 23 k€, representing 5.4% of revenue. Warning negative scissor effect: despite revenue change (-10%), EBITDA varies by -37%, reducing margin by 2.4 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 19 k€, i.e. 4.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 4%. 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 90%. 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 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 4.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 1580.92. 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 1.2x. 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: 5 days. Favorable situation: supplier credit is longer than customer credit by 2 days. Inventory turnover is 57 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 62 days of revenue, i.e. 72 k€ to permanently finance.

Based on 128 transactions of similar company sales in 2021, the value of APPRO CARS is estimated at 50 207 € (range 23 150€ - 149 456€). With an EBITDA of 22 854€, the sector multiple of 1.8x 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.