AUTO SPORT 74 : revenue, balance sheet and financial ratios

In 2023, AUTO SPORT 74 achieves revenue of 85 k€. Revenue is growing positively over 5 years (CAGR: +1.0%). Significant drop of -52% vs 2022. After deducting consumption (0 €), gross margin stands at 85 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 29 k€, representing 33.9% of revenue. Positive scissor effect: EBITDA margin improves by +24.1 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 15 k€, i.e. 18.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1215%. 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 39.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 18.1% 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 942.54. 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 46.5x. 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: 725 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 110 days. The gap of 615 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 1700 days of revenue, i.e. 401 k€ to permanently finance. Over 2019-2023, WCR increased by +196%, requiring additional financing.

Based on 276 transactions of similar company sales (all years), the value of AUTO SPORT 74 is estimated at 269 004 € (range 49 753€ - 422 347€). With an EBITDA of 28 767€, 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.