MULLER AUTOMOBILES : revenue, balance sheet and financial ratios

In 2021, MULLER AUTOMOBILES achieves revenue of 6.0 M€. Over the period 2016-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +21.6%. Significant drop of -16% vs 2020. After deducting consumption (5.5 M€), gross margin stands at 534 k€, i.e. a rate of 9%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 62 k€, representing 1.0% of revenue. Warning negative scissor effect: despite revenue change (-16%), EBITDA varies by -73%, reducing margin by 2.1 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 32 k€, i.e. 0.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 119%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 38%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 11.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 517.24. 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 18.0x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 8 days. Favorable situation: supplier credit is longer than customer credit by 8 days. Inventory turnover is 46 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 45 days of revenue, i.e. 746 k€ to permanently finance. Over 2016-2021, WCR increased by +428%, requiring additional financing.

Based on 128 transactions of similar company sales in 2021, the value of MULLER AUTOMOBILES is estimated at 352 298 € (range 177 540€ - 773 029€). With an EBITDA of 61 701€, the sector multiple of 1.8x 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.