BEAUCHAMP AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, BEAUCHAMP AUTOMOBILES achieves revenue of 7.8 M€. Revenue is growing positively over 9 years (CAGR: +3.7%). Vs 2023, growth of +23% (6.3 M€ -> 7.8 M€). After deducting consumption (6.7 M€), gross margin stands at 1.1 M€, i.e. a rate of 14%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 301 k€, representing 3.9% of revenue. Positive scissor effect: EBITDA margin improves by +2.3 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 175 k€, i.e. 2.2% 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 64%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 700.70. 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 9.5x. 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: 3 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 13 days. Favorable situation: supplier credit is longer than customer credit by 10 days. Inventory turnover is 76 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 75 days of revenue, i.e. 1.6 M€ to permanently finance. Over 2016-2024, WCR increased by +35%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of BEAUCHAMP AUTOMOBILES is estimated at 708 372 € (range 310 565€ - 1 311 892€). With an EBITDA of 300 591€, 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.