ETABLISSEMENTS LA HIROIRE AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, ETABLISSEMENTS LA HIROIRE AUTOMOBILES achieves revenue of 18.5 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.3%. Slight decline of -0% vs 2023. After deducting consumption (14.5 M€), gross margin stands at 4.0 M€, i.e. a rate of 21%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.7 M€, representing 9.3% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.3 M€, i.e. 7.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 12%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 50%. This high autonomy means the company finances most of its assets through equity, a sign of strength. 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 7.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 206.64. 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 4.7x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 18 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 127 days. Excellent situation: suppliers finance 109 days of the operating cycle (retail model). Inventory turnover is 108 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 114 days of revenue, i.e. 5.9 M€ to permanently finance. Over 2016-2024, WCR increased by +101%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of ETABLISSEMENTS LA HIROIRE AUTOMOBILES is estimated at 2 959 283 € (range 1 291 212€ - 5 808 361€). With an EBITDA of 1 716 415€, 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.