RENAULT VEHICLE INNOVATION : revenue, balance sheet and financial ratios

In 2024, RENAULT VEHICLE INNOVATION achieves revenue of 56.6 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +28.2%. Significant drop of -25% vs 2023. After deducting consumption (19.1 M€), gross margin stands at 37.5 M€, i.e. a rate of 66%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4.4 M€, representing 7.7% of revenue. Positive scissor effect: EBITDA margin improves by +3.4 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 96 k€, i.e. 0.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 27%. The balance between equity and debt is satisfactory. Cash flow represents 21.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 137.91. 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 23.1x. 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: 188 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 56 days. The gap of 132 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 98 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 93 days of revenue, i.e. 14.6 M€ to permanently finance. Over 2017-2024, WCR increased by +99%, requiring additional financing.

Based on 61 transactions of similar company sales (all years), the value of RENAULT VEHICLE INNOVATION is estimated at 7 518 622 € (range 4 434 392€ - 21 414 596€). With an EBITDA of 4 369 356€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.30x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.