GARAGE PIEDALLOS : revenue, balance sheet and financial ratios

In 2024, GARAGE PIEDALLOS achieves revenue of 2.2 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.0%. Slight decline of -5% vs 2023. After deducting consumption (1.0 M€), gross margin stands at 1.2 M€, i.e. a rate of 54%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 186 k€, representing 8.4% of revenue. Warning negative scissor effect: despite revenue change (-5%), EBITDA varies by -50%, reducing margin by 7.7 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 137 k€, i.e. 6.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 11%. 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 63%. 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 0.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.6% 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 266.77. 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 0.2x. 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: 32 days. The company must finance 12 days of gap between collections and payments. Inventory turnover is 46 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 107 days of revenue, i.e. 658 k€ to permanently finance. Over 2016-2024, WCR increased by +227%, requiring additional financing.

Based on 147 transactions of similar company sales in 2024, the value of GARAGE PIEDALLOS is estimated at 868 234 € (range 392 191€ - 1 549 024€). With an EBITDA of 186 219€, 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.