BAIGTS AUTOMOBILES : revenue, balance sheet and financial ratios

In 2019, BAIGTS AUTOMOBILES achieves revenue of 266 k€. Activity remains stable over the period (CAGR: -2.1%). Slight decline of -2% vs 2017. After deducting consumption (131 k€), gross margin stands at 136 k€, i.e. a rate of 51%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 30 k€, representing 11.3% of revenue. Positive scissor effect: EBITDA margin improves by +10.9 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 7 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 -200%. 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 -32%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 9.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 50.61. 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 16.1x. 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: 23 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 75 days. Excellent situation: suppliers finance 52 days of the operating cycle (retail model). Inventory turnover is 56 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 14 days of revenue, i.e. 11 k€ to permanently finance. Notable WCR improvement over the period (-60%), freeing up cash.

Based on 156 transactions of similar company sales in 2019, the value of BAIGTS AUTOMOBILES is estimated at 103 110 € (range 38 773€ - 223 254€). With an EBITDA of 30 124€, the sector multiple of 4.5x is applied. The price/revenue ratio is 0.36x (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.