AREA AUTO SARL : revenue, balance sheet and financial ratios

In 2024, AREA AUTO SARL achieves revenue of 526 k€. Revenue is declining over the period 2017-2024 (CAGR: -8.6%). Slight decline of -7% vs 2023. After deducting consumption (0 €), gross margin stands at 526 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 49 k€, representing 9.3% of revenue. Positive scissor effect: EBITDA margin improves by +36.1 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 494 k€, i.e. 94.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 15%. 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 86%. 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 4.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 93.3% 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 4591.74. 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 157.7x. 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: 180 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 15 days. The gap of 165 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 7702 days of revenue, i.e. 11.3 M€ to permanently finance. Over 2017-2024, WCR increased by +53%, requiring additional financing.

Based on 103 transactions of similar company sales (all years), the value of AREA AUTO SARL is estimated at 441 033 € (range 174 439€ - 1 105 681€). With an EBITDA of 48 759€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.30x (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.