SOCIETE DE MECANIQUE ET DE LOCATION AUTOMOBILE CHATELLERAUDAISE : revenue, balance sheet and financial ratios

In 2024, SOCIETE DE MECANIQUE ET DE LOCATION AUTOMOBILE CHATELLERAUDAISE achieves revenue of 21.6 M€. Revenue is growing positively over 9 years (CAGR: +3.5%). Significant drop of -13% vs 2023. After deducting consumption (639 k€), gross margin stands at 21.0 M€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4.0 M€, representing 18.4% of revenue. Warning negative scissor effect: despite revenue change (-13%), EBITDA varies by -48%, reducing margin by 12.8 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Net income is negative at -2.4 M€ (-11.1% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 103528%. 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 0%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 11.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.1% 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 157.16. 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 24.9x. 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: 59 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 20 days. The gap of 39 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 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 54 days of revenue, i.e. 3.2 M€ to permanently finance. Over 2016-2024, WCR increased by +152%, requiring additional financing.

Based on 276 transactions of similar company sales (all years), the value of SOCIETE DE MECANIQUE ET DE LOCATION AUTOMOBILE CHATELLERAUDAISE is estimated at 48 737 488 € (range 10 481 524€ - 65 172 065€). With an EBITDA of 3 989 507€, the sector multiple of 11.9x is applied. The price/revenue ratio is 2.33x (premium 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.