CAR CUSTOM PARIS : revenue, balance sheet and financial ratios

In 2024, CAR CUSTOM PARIS achieves revenue of 245 k€. Over the period 2020-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.2%. Significant drop of -55% vs 2023. After deducting consumption (146 k€), gross margin stands at 99 k€, i.e. a rate of 41%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 71 k€, representing 29.1% of revenue. Positive scissor effect: EBITDA margin improves by +28.7 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 47 k€, i.e. 19.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 290%. 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 23%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.9 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 23.1% 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 1012.74. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 24 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 15 days. The company must finance 9 days of gap between collections and payments. Inventory turnover is 372 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 404 days of revenue, i.e. 275 k€ to permanently finance. Over 2020-2024, WCR increased by +1668%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of CAR CUSTOM PARIS is estimated at 93 893 € (range 40 049€ - 184 497€). With an EBITDA of 71 324€, 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.