ARVAL SERVICE LEASE : revenue, balance sheet and financial ratios

In 2024, ARVAL SERVICE LEASE achieves revenue of 1.6 Bn€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.2%. Vs 2023, growth of +21% (1.3 Bn€ -> 1.6 Bn€). After deducting consumption (15.1 M€), gross margin stands at 1.6 Bn€, i.e. a rate of 99%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 767.7 M€, representing 47.5% of revenue. Positive scissor effect: EBITDA margin improves by +6.6 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 584.4 M€, i.e. 36.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 637%. 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 13%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 86.1% 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 194.75. 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 55.1x. 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: 103 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 106 days. Favorable situation: supplier credit is longer than customer credit by 3 days. Inventory turnover is 11 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-90 days): operations structurally generate cash. Over 2016-2024, WCR increased by +81%, requiring additional financing.

Based on 276 transactions of similar company sales (all years), the value of ARVAL SERVICE LEASE is estimated at 7 153 314 991 € (range 1 232 703 902€ - 11 941 377 589€). With an EBITDA of 767 698 095€, 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.