GEMY AUTOMOBILES LOCATION : revenue, balance sheet and financial ratios

In 2024, GEMY AUTOMOBILES LOCATION achieves revenue of 2.3 M€. Over the period 2023-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +259.2%. Vs 2023, growth of +259% (628 k€ -> 2.3 M€). After deducting consumption (6 k€), gross margin stands at 2.3 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 264 k€, representing 11.7% of revenue. Warning negative scissor effect: despite revenue change (+259%), EBITDA varies by +6%, reducing margin by 27.9 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 157 k€, i.e. 7.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 19%. 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 48%. 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 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.7% 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 286.94. 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 5.9x. 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: 28 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 14 days. The company must finance 14 days of gap between collections and payments. Overall, WCR represents 37 days of revenue, i.e. 235 k€ to permanently finance.

Based on 276 transactions of similar company sales (all years), the value of GEMY AUTOMOBILES LOCATION is estimated at 3 542 070 € (range 699 093€ - 5 335 728€). With an EBITDA of 263 980€, the sector multiple of 11.9x is applied. The price/revenue ratio is 2.33x (premium 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.