GARAGE DU CHATEAU : revenue, balance sheet and financial ratios

In 2024, GARAGE DU CHATEAU achieves revenue of 3.0 M€. Over the period 2021-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +36.3%. Vs 2022, growth of +109% (1.5 M€ -> 3.0 M€). After deducting consumption (1.1 M€), gross margin stands at 1.9 M€, i.e. a rate of 63%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 881 k€, representing 28.9% of revenue. Positive scissor effect: EBITDA margin improves by +25.5 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 78 k€, i.e. 2.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 135%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 29%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 27.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 245.47. 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 0.4x. 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: 131 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 80 days. The gap of 51 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 58 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 161 days of revenue, i.e. 1.4 M€ to permanently finance. Over 2021-2024, WCR increased by +166%, requiring additional financing.

Based on 147 transactions of similar company sales in 2024, the value of GARAGE DU CHATEAU is estimated at 2 820 661 € (range 1 163 852€ - 4 702 869€). With an EBITDA of 880 840€, 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.