AUTO SERVICES TOULOUSE : revenue, balance sheet and financial ratios

In 2024, AUTO SERVICES TOULOUSE achieves revenue of 79.0 M€. Revenue is growing positively over 7 years (CAGR: +3.6%). Slight decline of -9% vs 2023. After deducting consumption (64.3 M€), gross margin stands at 14.7 M€, i.e. a rate of 19%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.8 M€, representing 3.6% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.2 M€, i.e. 2.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 37%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 24%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 133.78. 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 14.8x. 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: 20 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 119 days. Excellent situation: suppliers finance 99 days of the operating cycle (retail model). Inventory turnover is 105 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 130 days of revenue, i.e. 28.6 M€ to permanently finance. Over 2018-2024, WCR increased by +96%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of AUTO SERVICES TOULOUSE is estimated at 7 252 562 € (range 3 213 798€ - 13 796 104€). With an EBITDA of 2 846 781€, 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.