AUTO FINANCES MADRONET : revenue, balance sheet and financial ratios

In 2024, AUTO FINANCES MADRONET achieves revenue of 362 k€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +15.4%. Significant drop of -33% vs 2023. After deducting consumption (137 k€), gross margin stands at 225 k€, i.e. a rate of 62%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -37 k€, representing -10.3% of revenue. Warning negative scissor effect: despite revenue change (-33%), EBITDA varies by -60%, reducing margin by 6.0 pts. This reflects costs rising faster than revenue. Negative EBITDA means operations do not cover current expenses: concerning situation. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 21 k€, i.e. 5.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 98%. 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 17.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 1035.62. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 80 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 103 days. Favorable situation: supplier credit is longer than customer credit by 23 days. Inventory turnover is 224 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 224 days of revenue, i.e. 225 k€ to permanently finance. Notable WCR improvement over the period (-97%), freeing up cash.

Based on 103 transactions of similar company sales in 2024, the value of AUTO FINANCES MADRONET is estimated at 160 262 € (range 65 962€ - 376 314€). The price/revenue ratio is 0.38x (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.