TENDANCE MOTORS : revenue, balance sheet and financial ratios

In 2024, TENDANCE MOTORS achieves revenue of 6.5 M€. Over the period 2019-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.3%. Slight decline of -2% vs 2023. After deducting consumption (4.9 M€), gross margin stands at 1.6 M€, i.e. a rate of 25%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 320 k€, representing 4.9% of revenue. Warning negative scissor effect: despite revenue change (-2%), EBITDA varies by -37%, reducing margin by 2.7 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 362 k€, i.e. 5.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 29%. 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 49%. 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 1.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 233.56. 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 3.5x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 6 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 42 days. Excellent situation: suppliers finance 36 days of the operating cycle (retail model). Inventory turnover is 86 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 81 days of revenue, i.e. 1.4 M€ to permanently finance.

Based on 137 transactions of similar company sales (all years), the value of TENDANCE MOTORS is estimated at 985 660 € (range 520 613€ - 2 079 433€). With an EBITDA of 319 545€, the sector multiple of 2.9x is applied. The price/revenue ratio is 0.17x (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.