AUTO REAL ATLANTIQUE : revenue, balance sheet and financial ratios

In 2024, AUTO REAL ATLANTIQUE achieves revenue of 22.5 M€. Over the period 2022-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +1303.1%. Vs 2023, growth of +31% (17.2 M€ -> 22.5 M€). After deducting consumption (19.0 M€), gross margin stands at 3.5 M€, i.e. a rate of 16%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 948 k€, representing 4.2% of revenue. Warning negative scissor effect: despite revenue change (+31%), EBITDA varies by -28%, reducing margin by 3.5 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 559 k€, i.e. 2.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 485%. 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 7%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 151.95. 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 13.6x. 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: 9 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 73 days. Excellent situation: suppliers finance 64 days of the operating cycle (retail model). Inventory turnover is 123 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 123 days of revenue, i.e. 7.7 M€ to permanently finance. Over 2022-2024, WCR increased by +638%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of AUTO REAL ATLANTIQUE is estimated at 2 141 517 € (range 937 513€ - 3 979 734€). With an EBITDA of 948 184€, the sector multiple of 1.6x 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.