RAVE AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, RAVE AUTOMOBILES achieves revenue of 9.5 M€. Revenue is growing positively over 9 years (CAGR: +0.8%). Significant drop of -22% vs 2023. After deducting consumption (7.3 M€), gross margin stands at 2.2 M€, i.e. a rate of 23%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 399 k€, representing 4.2% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 186 k€, i.e. 2.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 17%. 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 70%. 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 2.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 476.02. 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 4.4x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 10 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 49 days. Excellent situation: suppliers finance 39 days of the operating cycle (retail model). Inventory turnover is 84 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 111 days of revenue, i.e. 2.9 M€ to permanently finance.

Based on 148 transactions of similar company sales in 2024, the value of RAVE AUTOMOBILES is estimated at 875 377 € (range 380 605€ - 1 592 638€). With an EBITDA of 398 732€, 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.