MILANO AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, MILANO AUTOMOBILES achieves revenue of 15.1 M€. Revenue is growing positively over 9 years (CAGR: +2.6%). Significant drop of -20% vs 2023. After deducting consumption (12.3 M€), gross margin stands at 2.9 M€, i.e. a rate of 19%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 49 k€, representing 0.3% of revenue. Warning negative scissor effect: despite revenue change (-20%), EBITDA varies by -89%, reducing margin by 2.1 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -88 k€ (-0.6% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 43%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 30%. The balance between equity and debt is satisfactory.

The liquidity ratio (= Current assets / Current liabilities) stands at 163.73. 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 147.6x. 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: 22 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 98 days. Excellent situation: suppliers finance 76 days of the operating cycle (retail model). Inventory turnover is 96 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 121 days of revenue, i.e. 5.1 M€ to permanently finance. Over 2016-2024, WCR increased by +37%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of MILANO AUTOMOBILES is estimated at 960 463 € (range 434 488€ - 1 681 158€). With an EBITDA of 48 885€, 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.