CARROSSERIE SERVICE : revenue, balance sheet and financial ratios

In 2021, CARROSSERIE SERVICE achieves revenue of 209 k€. Over the period 2016-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +6.4%. Vs 2020, growth of +31% (160 k€ -> 209 k€). After deducting consumption (126 k€), gross margin stands at 83 k€, i.e. a rate of 40%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 8 k€, representing 3.8% of revenue. Warning negative scissor effect: despite revenue change (+31%), EBITDA varies by -68%, reducing margin by 11.9 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 13 k€, i.e. 6.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 65%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 26%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 14.0% 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 100.34. 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 0.6x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 39 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 15 days. The company must finance 24 days of gap between collections and payments. Inventory turnover is 13 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-53 days): operations structurally generate cash. Notable WCR improvement over the period (-204%), freeing up cash.

Based on 135 transactions of similar company sales in 2021, the value of CARROSSERIE SERVICE is estimated at 53 317 € (range 23 983€ - 102 702€). With an EBITDA of 8 014€, the sector multiple of 3.8x is applied. The price/revenue ratio is 0.40x (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.