GARAGE CLUB : revenue, balance sheet and financial ratios

In 2024, GARAGE CLUB achieves revenue of 2.5 M€. Revenue is growing positively over 8 years (CAGR: +4.1%). Significant drop of -17% vs 2023. After deducting consumption (1.6 M€), gross margin stands at 929 k€, i.e. a rate of 37%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 62 k€, representing 2.5% of revenue. Warning negative scissor effect: despite revenue change (-17%), EBITDA varies by -77%, reducing margin by 6.6 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2 k€, i.e. 0.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 57%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 46%. 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 7.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 349.69. 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 0.0x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 44 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 15 days. The company must finance 29 days of gap between collections and payments. Inventory turnover is 186 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 186 days of revenue, i.e. 1.3 M€ to permanently finance. Over 2016-2024, WCR increased by +206%, requiring additional financing.

Based on 147 transactions of similar company sales in 2024, the value of GARAGE CLUB is estimated at 439 104 € (range 242 038€ - 780 986€). With an EBITDA of 62 389€, the sector multiple of 5.5x is applied. The price/revenue ratio is 0.35x (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.