MAYOTTE LOCATION AUTOMOBILE : revenue, balance sheet and financial ratios

In 2024, MAYOTTE LOCATION AUTOMOBILE achieves revenue of 2.0 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.0%. Significant drop of -16% vs 2023. After deducting consumption (-136 k€), gross margin stands at 2.1 M€, i.e. a rate of 107%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 292 k€, representing 14.6% of revenue. This level of operating margin is satisfactory for the sector. Net income is negative at -210 k€ (-10.5% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at -1590%. 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 -5%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.2% 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 232.97. 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 15.9x. 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: 121 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. The gap of 67 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 34 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 130 days of revenue, i.e. 722 k€ to permanently finance. Over 2016-2024, WCR increased by +332%, requiring additional financing.

Based on 276 transactions of similar company sales (all years), the value of MAYOTTE LOCATION AUTOMOBILE is estimated at 3 932 567 € (range 852 509€ - 5 245 097€). With an EBITDA of 291 818€, 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.