FROUARD AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, FROUARD AUTOMOBILES achieves revenue of 7.0 M€. Revenue is growing positively over 8 years (CAGR: +1.8%). Vs 2023, growth of +26% (5.5 M€ -> 7.0 M€). After deducting consumption (4.8 M€), gross margin stands at 2.2 M€, i.e. a rate of 31%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 631 k€, representing 9.0% of revenue. Positive scissor effect: EBITDA margin improves by +3.9 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 373 k€, i.e. 5.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 55%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 55%. 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 2.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.1% 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 610.26. 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 2.7x. 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: 29 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 12 days. The company must finance 17 days of gap between collections and payments. Inventory turnover is 77 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 88 days of revenue, i.e. 1.7 M€ to permanently finance.

Based on 148 transactions of similar company sales in 2024, the value of FROUARD AUTOMOBILES is estimated at 1 040 071 € (range 448 075€ - 1 969 837€). With an EBITDA of 631 102€, 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.