TRAVERS AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, TRAVERS AUTOMOBILES achieves revenue of 1.7 M€. Activity remains stable over the period (CAGR: -4.9%). Vs 2023: +4%. After deducting consumption (1.2 M€), gross margin stands at 541 k€, i.e. a rate of 31%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 31 k€, representing 1.8% of revenue. Warning negative scissor effect: despite revenue change (+4%), EBITDA varies by -65%, reducing margin by 3.6 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 12 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 78%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 39%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 19.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 218.75. 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 31.8x. 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: 20 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 16 days. The company must finance 4 days of gap between collections and payments. Inventory turnover is 65 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 32 days of revenue, i.e. 152 k€ to permanently finance. Notable WCR improvement over the period (-66%), freeing up cash.

Based on 147 transactions of similar company sales in 2024, the value of TRAVERS AUTOMOBILES is estimated at 277 109 € (range 156 026€ - 502 545€). With an EBITDA of 31 234€, the sector multiple of 5.5x is applied. The price/revenue ratio is 0.35x (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.