VALVERT SPORT AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, VALVERT SPORT AUTOMOBILES achieves revenue of 9.0 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +20.9%. Vs 2023, growth of +14% (7.9 M€ -> 9.0 M€). After deducting consumption (7.3 M€), gross margin stands at 1.7 M€, i.e. a rate of 18%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 105 k€, representing 1.2% of revenue. Warning negative scissor effect: despite revenue change (+14%), EBITDA varies by -59%, reducing margin by 2.0 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 64 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 50%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 21%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 118.09. 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 32.8x. 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: 24 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 81 days. Excellent situation: suppliers finance 57 days of the operating cycle (retail model). Inventory turnover is 60 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 99 days of revenue, i.e. 2.5 M€ to permanently finance. Over 2016-2024, WCR increased by +190%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of VALVERT SPORT AUTOMOBILES is estimated at 551 022 € (range 247 256€ - 996 163€). With an EBITDA of 105 158€, 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.