DEFRANCE AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, DEFRANCE AUTOMOBILES achieves revenue of 35.4 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +117.0%. Vs 2023, growth of +19% (29.7 M€ -> 35.4 M€). After deducting consumption (29.8 M€), gross margin stands at 5.6 M€, i.e. a rate of 16%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 496 k€, representing 1.4% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 345 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 48%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 22%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.1 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 0.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 137.72. 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 39.4x. 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: 15 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 108 days. Excellent situation: suppliers finance 93 days of the operating cycle (retail model). Inventory turnover is 95 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 149 days of revenue, i.e. 14.6 M€ to permanently finance. Over 2016-2024, WCR increased by +11785%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of DEFRANCE AUTOMOBILES is estimated at 2 281 695 € (range 1 023 099€ - 4 169 522€). With an EBITDA of 496 346€, 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.