SELECT AUTOS : revenue, balance sheet and financial ratios

In 2024, SELECT AUTOS achieves revenue of 517 k€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +13.3%. Significant drop of -27% vs 2023. After deducting consumption (421 k€), gross margin stands at 96 k€, i.e. a rate of 19%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4 k€, representing 0.7% of revenue. Warning negative scissor effect: despite revenue change (-27%), EBITDA varies by -82%, reducing margin by 2.3 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 2 k€, i.e. 0.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 7%. 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 87%. 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 3.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 0.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 1307.15. 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 2.8x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 3 days. Favorable situation: supplier credit is longer than customer credit by 3 days. Inventory turnover is 73 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 72 days of revenue, i.e. 103 k€ to permanently finance. Over 2017-2024, WCR increased by +280%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of SELECT AUTOS is estimated at 29 108 € (range 13 124€ - 52 101€). With an EBITDA of 3 856€, 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.