JNT AUTOMOBILES : revenue, balance sheet and financial ratios

In 2023, JNT AUTOMOBILES achieves revenue of 2.4 M€. Over the period 2018-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +8.2%. Vs 2022: +8%. After deducting consumption (2.0 M€), gross margin stands at 384 k€, i.e. a rate of 16%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 83 k€, representing 3.5% of revenue. Warning negative scissor effect: despite revenue change (+8%), EBITDA varies by -38%, reducing margin by 2.6 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 36 k€, i.e. 1.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1941%. 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 5%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 12.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 219.68. 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 30.5x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 31 days. Excellent situation: suppliers finance 31 days of the operating cycle (retail model). Inventory turnover is 130 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 76 days of revenue, i.e. 505 k€ to permanently finance. Over 2018-2023, WCR increased by +23%, requiring additional financing.

Based on 149 transactions of similar company sales in 2023, the value of JNT AUTOMOBILES is estimated at 160 009 € (range 67 973€ - 389 691€). With an EBITDA of 82 523€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.13x (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.