SURPLUS AUTOS : revenue, balance sheet and financial ratios

In 2024, SURPLUS AUTOS achieves revenue of 26.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +10.8%. Vs 2023: +8%. After deducting consumption (11.4 M€), gross margin stands at 15.3 M€, i.e. a rate of 57%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.8 M€, representing 6.7% of revenue. Warning negative scissor effect: despite revenue change (+8%), EBITDA varies by -26%, reducing margin by 3.0 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 578 k€, i.e. 2.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 87%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 45%. 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 6.6 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 419.87. 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 12.7x. 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: 29 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 33 days. Favorable situation: supplier credit is longer than customer credit by 4 days. Inventory turnover is 91 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 135 days of revenue, i.e. 10.0 M€ to permanently finance. Over 2016-2024, WCR increased by +503%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of SURPLUS AUTOS is estimated at 3 019 318 € (range 1 282 610€ - 5 357 776€). With an EBITDA of 1 777 692€, 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.