CAP OUEST AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, CAP OUEST AUTOMOBILES achieves revenue of 34.5 M€. Revenue is growing positively over 8 years (CAGR: +4.4%). Vs 2023, growth of +21% (28.6 M€ -> 34.5 M€). After deducting consumption (29.7 M€), gross margin stands at 4.7 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 431 k€, representing 1.3% of revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -3 k€ (-0.0% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 355%. 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 9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 26.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 153.96. 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 98.1x. 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: 9 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 60 days. Excellent situation: suppliers finance 51 days of the operating cycle (retail model). Inventory turnover is 104 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 105 days of revenue, i.e. 10.1 M€ to permanently finance. Over 2016-2024, WCR increased by +52%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of CAP OUEST AUTOMOBILES is estimated at 2 509 376 € (range 1 109 275€ - 4 307 934€). With an EBITDA of 431 363€, 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.