J.DURAND AUTOMOBILES : revenue, balance sheet and financial ratios

In 2022, J.DURAND AUTOMOBILES achieves revenue of 1.6 M€. Over the period 2017-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +12.1%. Vs 2021, growth of +27% (1.3 M€ -> 1.6 M€). After deducting consumption (1.0 M€), gross margin stands at 591 k€, i.e. a rate of 37%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 105 k€, representing 6.5% of revenue. Warning negative scissor effect: despite revenue change (+27%), EBITDA varies by -8%, reducing margin by 2.5 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 102 k€, i.e. 6.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 533%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 14%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.5 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.2% 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 578.12. 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 1.2x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 6 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 9 days. Favorable situation: supplier credit is longer than customer credit by 3 days. Inventory turnover is 70 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 53 days of revenue, i.e. 238 k€ to permanently finance. Over 2017-2022, WCR increased by +31%, requiring additional financing.

Based on 148 transactions of similar company sales in 2022, the value of J.DURAND AUTOMOBILES is estimated at 200 284 € (range 93 138€ - 567 396€). With an EBITDA of 105 132€, the sector multiple of 1.2x 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.