CFAO MOTORS REUNION : revenue, balance sheet and financial ratios

In 2025, CFAO MOTORS REUNION achieves revenue of 81.1 M€. Activity remains stable over the period (CAGR: -1.0%). Significant drop of -50% vs 2024. After deducting consumption (64.7 M€), gross margin stands at 16.4 M€, i.e. a rate of 20%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 533 k€, representing 0.7% of revenue. Warning negative scissor effect: despite revenue change (-50%), EBITDA varies by -94%, reducing margin by 4.6 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -574 k€ (-0.7% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 126%. Debt level is high: negotiating margin with banks is reduced. 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 762.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 191.40. 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 100.1x. 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: 19 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 35 days. Favorable situation: supplier credit is longer than customer credit by 16 days. Inventory turnover is 100 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 90 days of revenue, i.e. 20.2 M€ to permanently finance.

Based on 113 transactions of similar company sales in 2025, the value of CFAO MOTORS REUNION is estimated at 6 581 586 € (range 3 570 573€ - 10 293 333€). With an EBITDA of 533 040€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (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.