MIDI AUTO 46 : revenue, balance sheet and financial ratios

In 2024, MIDI AUTO 46 achieves revenue of 6.8 M€. Revenue is declining over the period 2016-2024 (CAGR: -6.4%). Slight decline of -7% vs 2023. After deducting consumption (5.2 M€), gross margin stands at 1.6 M€, i.e. a rate of 24%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 92 k€, representing 1.3% of revenue. Warning negative scissor effect: despite revenue change (-7%), EBITDA varies by -71%, reducing margin by 3.0 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -26 k€ (-0.4% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 20%. 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 67%. 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 8.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 542.10. 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 35.8x. 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: 20 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 60 days. Excellent situation: suppliers finance 40 days of the operating cycle (retail model). Inventory turnover is 181 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 218 days of revenue, i.e. 4.1 M€ to permanently finance.

Based on 148 transactions of similar company sales in 2024, the value of MIDI AUTO 46 is estimated at 504 273 € (range 222 442€ - 864 163€). With an EBITDA of 92 225€, 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.