ROAD RUNNER MOTOCYCLE : revenue, balance sheet and financial ratios

In 2024, ROAD RUNNER MOTOCYCLE achieves revenue of 1.1 M€. Over the period 2018-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +20.6%. Slight decline of -6% vs 2023. After deducting consumption (690 k€), gross margin stands at 361 k€, i.e. a rate of 34%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 95 k€, representing 9.0% of revenue. Positive scissor effect: EBITDA margin improves by +8.3 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 56 k€, i.e. 5.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 53%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 49%. 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 3.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 256.55. 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 11.5x. 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: 15 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 71 days. Excellent situation: suppliers finance 56 days of the operating cycle (retail model). Inventory turnover is 88 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 106 days of revenue, i.e. 310 k€ to permanently finance. Over 2018-2024, WCR increased by +109%, requiring additional financing.

Based on 137 transactions of similar company sales (all years), the value of ROAD RUNNER MOTOCYCLE is estimated at 221 728 € (range 113 250€ - 478 335€). With an EBITDA of 94 642€, the sector multiple of 2.9x is applied. The price/revenue ratio is 0.17x (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.