MILLESIME AUTO : revenue, balance sheet and financial ratios

In 2023, MILLESIME AUTO achieves revenue of 2.0 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +9.1%. Significant drop of -14% vs 2020. After deducting consumption (1.5 M€), gross margin stands at 508 k€, i.e. a rate of 25%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 52 k€, representing 2.6% of revenue. Warning negative scissor effect: despite revenue change (-14%), EBITDA varies by -68%, reducing margin by 4.3 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 2 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 1243%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 7%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 41.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 889.44. 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 64.0x. 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: 4 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 12 days. Favorable situation: supplier credit is longer than customer credit by 8 days. Inventory turnover is 110 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 122 days of revenue, i.e. 692 k€ to permanently finance. Over 2016-2023, WCR increased by +200%, requiring additional financing.

Based on 149 transactions of similar company sales in 2023, the value of MILLESIME AUTO is estimated at 112 755 € (range 52 144€ - 280 936€). With an EBITDA of 52 079€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.13x (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.