PGV AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, PGV AUTOMOBILES achieves revenue of 2.5 M€. Revenue is growing positively over 9 years (CAGR: +3.3%). Vs 2023, growth of +12% (2.3 M€ -> 2.5 M€). After deducting consumption (1.6 M€), gross margin stands at 942 k€, i.e. a rate of 37%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 94 k€, representing 3.7% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 89 k€, i.e. 3.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 39%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 48%. 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 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 160.97. 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 9.2x. 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: 16 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 37 days. Favorable situation: supplier credit is longer than customer credit by 21 days. Inventory turnover is 51 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 67 days of revenue, i.e. 469 k€ to permanently finance. Over 2016-2024, WCR increased by +356%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of PGV AUTOMOBILES is estimated at 243 839 € (range 108 803€ - 474 871€). With an EBITDA of 93 809€, 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.