LOIRE AUTOMOBILE : revenue, balance sheet and financial ratios

In 2024, LOIRE AUTOMOBILE achieves revenue of 1.6 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.9%. Vs 2023, growth of +30% (1.2 M€ -> 1.6 M€). After deducting consumption (949 k€), gross margin stands at 623 k€, i.e. a rate of 40%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 110 k€, representing 7.0% of revenue. Warning negative scissor effect: despite revenue change (+30%), EBITDA varies by -20%, reducing margin by 4.4 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 74 k€, i.e. 4.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 4%. 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 81%. 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 6.0% 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 531.57. 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 1.8x. 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: 26 days. Favorable situation: supplier credit is longer than customer credit by 20 days. Inventory turnover is 82 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 116 days of revenue, i.e. 505 k€ to permanently finance. Over 2017-2024, WCR increased by +306%, requiring additional financing.

Based on 147 transactions of similar company sales in 2024, the value of LOIRE AUTOMOBILE is estimated at 535 349 € (range 248 271€ - 954 310€). With an EBITDA of 110 393€, 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.