SERVICES ET VENTES AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, SERVICES ET VENTES AUTOMOBILES achieves revenue of 15.8 M€. Revenue is growing positively over 8 years (CAGR: +1.4%). Vs 2023, growth of +13% (13.9 M€ -> 15.8 M€). After deducting consumption (12.7 M€), gross margin stands at 3.0 M€, i.e. a rate of 19%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 382 k€, representing 2.4% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 102 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 174%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 15%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 16.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 156.92. 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 70.9x. 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: 18 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 79 days. Excellent situation: suppliers finance 61 days of the operating cycle (retail model). Inventory turnover is 111 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 134 days of revenue, i.e. 5.9 M€ to permanently finance. Over 2016-2024, WCR increased by +24%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of SERVICES ET VENTES AUTOMOBILES is estimated at 1 119 656 € (range 489 737€ - 1 966 231€). With an EBITDA of 381 786€, 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.