SOULGE AUTOMOBILE : revenue, balance sheet and financial ratios

In 2023, SOULGE AUTOMOBILE achieves revenue of 2.6 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +11.1%. Vs 2022, growth of +79% (1.4 M€ -> 2.6 M€). After deducting consumption (2.3 M€), gross margin stands at 250 k€, i.e. a rate of 10%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 81 k€, representing 3.1% of revenue. Positive scissor effect: EBITDA margin improves by +2.4 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 49 k€, i.e. 1.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 52%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 59%. 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 4.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 914.45. 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 16.7x. 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: 1 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 5 days. Favorable situation: supplier credit is longer than customer credit by 4 days. 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 108 days of revenue, i.e. 774 k€ to permanently finance. Over 2016-2023, WCR increased by +397%, requiring additional financing.

Based on 139 transactions of similar company sales in 2023, the value of SOULGE AUTOMOBILE is estimated at 493 125 € (range 294 057€ - 838 641€). With an EBITDA of 80 503€, the sector multiple of 4.1x is applied. The price/revenue ratio is 0.36x (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.