FOCH AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, FOCH AUTOMOBILES achieves revenue of 35.9 M€. Revenue is growing positively over 9 years (CAGR: +0.2%). Significant drop of -11% vs 2023. After deducting consumption (29.9 M€), gross margin stands at 6.0 M€, i.e. a rate of 17%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 629 k€, representing 1.8% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 404 k€, i.e. 1.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 28%. 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 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 1.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 179.34. 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 10.5x. 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: 6 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 48 days. Excellent situation: suppliers finance 42 days of the operating cycle (retail model). Inventory turnover is 68 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 76 days of revenue, i.e. 7.6 M€ to permanently finance. Over 2016-2024, WCR increased by +27%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of FOCH AUTOMOBILES is estimated at 2 445 970 € (range 1 091 656€ - 4 473 571€). With an EBITDA of 628 633€, 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.