GARAGE DU LUXEMBOURG : revenue, balance sheet and financial ratios

In 2023, GARAGE DU LUXEMBOURG achieves revenue of 399 k€. Revenue is declining over the period 2016-2023 (CAGR: -8.4%). Slight decline of -2% vs 2022. After deducting consumption (143 k€), gross margin stands at 256 k€, i.e. a rate of 64%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 18 k€, representing 4.5% of revenue. Warning negative scissor effect: despite revenue change (-2%), EBITDA varies by -52%, reducing margin by 4.7 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 28 k€, 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 14%. 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 6%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.3% 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 202.50. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 389 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 67 days. The gap of 322 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 32 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 274 days of revenue, i.e. 304 k€ to permanently finance. Over 2016-2023, WCR increased by +571%, requiring additional financing.

Based on 139 transactions of similar company sales in 2023, the value of GARAGE DU LUXEMBOURG is estimated at 110 101 € (range 60 848€ - 197 099€). With an EBITDA of 17 859€, the sector multiple of 4.1x is applied. The price/revenue ratio is 0.36x (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.