AUTOMOBILE SERVICES MORANGIS : revenue, balance sheet and financial ratios

In 2022, AUTOMOBILE SERVICES MORANGIS achieves revenue of 39 k€. Activity remains stable over the period (CAGR: -1.3%). Vs 2021: +6%. After deducting consumption (0 €), gross margin stands at 39 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 12 k€, representing 30.3% of revenue. Warning negative scissor effect: despite revenue change (+6%), EBITDA varies by -26%, reducing margin by 13.4 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2 k€, i.e. 5.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 5239%. 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 2%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 30.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 17.4% 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 4715.82. 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 36.0x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 13 days. Favorable situation: supplier credit is longer than customer credit by 13 days. Inventory turnover is 1676 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1652 days of revenue, i.e. 178 k€ to permanently finance. Over 2016-2022, WCR increased by +62%, requiring additional financing.

Based on 130 transactions of similar company sales in 2022, the value of AUTOMOBILE SERVICES MORANGIS is estimated at 28 009 € (range 14 580€ - 53 787€). With an EBITDA of 11 752€, the sector multiple of 3.9x is applied. The price/revenue ratio is 0.31x (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.