TECUMSEH EUROPE SA : revenue, balance sheet and financial ratios

In 2024, TECUMSEH EUROPE SA achieves revenue of 1.8 M€. Activity remains stable over the period (CAGR: -4.2%). Significant drop of -26% vs 2023. After deducting consumption (0 €), gross margin stands at 1.8 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 697 k€, representing 39.3% of revenue. Warning negative scissor effect: despite revenue change (-26%), EBITDA varies by -60%, reducing margin by 33.3 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.6 M€, i.e. 149.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 9%. 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 52%. This high autonomy means the company finances most of its assets through equity, a sign of strength.

The liquidity ratio (= Current assets / Current liabilities) stands at 12.78. 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 1564.3x. 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: 13 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 699 days. Excellent situation: suppliers finance 686 days of the operating cycle (retail model). WCR is negative (-1529 days): operations structurally generate cash. Notable WCR improvement over the period (-504%), freeing up cash.

Based on 169 transactions of similar company sales in 2024, the value of TECUMSEH EUROPE SA is estimated at 5 981 893 € (range 1 763 384€ - 10 817 316€). With an EBITDA of 696 524€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.81x (in line with sector norms). 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.