KOREAN MOTORS CAR : revenue, balance sheet and financial ratios

In 2024, KOREAN MOTORS CAR achieves revenue of 18.3 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +15.6%. Significant drop of -25% vs 2023. After deducting consumption (16.0 M€), gross margin stands at 2.3 M€, i.e. a rate of 13%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 244 k€, representing 1.3% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 24 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 70%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 15%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 14.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 140.16. 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 75.5x. 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: 18 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 108 days. Excellent situation: suppliers finance 90 days of the operating cycle (retail model). Inventory turnover is 118 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 136 days of revenue, i.e. 6.9 M€ to permanently finance. Over 2017-2024, WCR increased by +225%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of KOREAN MOTORS CAR is estimated at 1 091 623 € (range 482 966€ - 1 889 951€). With an EBITDA of 244 010€, 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.