GARAGE HESDINOIS : revenue, balance sheet and financial ratios

In 2024, GARAGE HESDINOIS achieves revenue of 17.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.1%. Significant drop of -26% vs 2023. After deducting consumption (15.2 M€), gross margin stands at 2.5 M€, i.e. a rate of 14%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 167 k€, representing 0.9% of revenue. Warning negative scissor effect: despite revenue change (-26%), EBITDA varies by -78%, reducing margin by 2.3 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 17 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 94%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 18%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 16.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 142.06. 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 19.9x. 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: 34 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 135 days. Excellent situation: suppliers finance 101 days of the operating cycle (retail model). Inventory turnover is 174 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 221 days of revenue, i.e. 10.9 M€ to permanently finance. Over 2016-2024, WCR increased by +310%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of GARAGE HESDINOIS is estimated at 996 563 € (range 444 504€ - 1 734 170€). With an EBITDA of 166 975€, 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.