CARREFOUR AUTOMOBILES : revenue, balance sheet and financial ratios

In 2023, CARREFOUR AUTOMOBILES achieves revenue of 954 k€. Over the period 2021-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +14.4%. Vs 2022, growth of +18% (809 k€ -> 954 k€). After deducting consumption (489 k€), gross margin stands at 465 k€, i.e. a rate of 49%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 23 k€, representing 2.4% of revenue. Warning negative scissor effect: despite revenue change (+18%), EBITDA varies by -43%, reducing margin by 2.6 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 9 k€, i.e. 1.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 69%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 33%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 164.14. 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 100.4x. 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: 70 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 57 days. The company must finance 13 days of gap between collections and payments. Inventory turnover is 18 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 80 days of revenue, i.e. 212 k€ to permanently finance. Over 2021-2023, WCR increased by +433%, requiring additional financing.

Based on 139 transactions of similar company sales in 2023, the value of CARREFOUR AUTOMOBILES is estimated at 158 709 € (range 97 470€ - 265 721€). With an EBITDA of 22 949€, the sector multiple of 4.1x 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.