VERLAINE AUTOMOBILES : revenue, balance sheet and financial ratios

In 2024, VERLAINE AUTOMOBILES achieves revenue of 9.7 M€. Activity remains stable over the period (CAGR: -2.7%). Slight decline of -8% vs 2023. After deducting consumption (7.4 M€), gross margin stands at 2.4 M€, i.e. a rate of 24%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 384 k€, representing 3.9% of revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -21 k€ (-0.2% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 239%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 20%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 296.94. 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 13.9x. 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: 35 days. Favorable situation: supplier credit is longer than customer credit by 15 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 98 days of revenue, i.e. 2.7 M€ to permanently finance.

Based on 148 transactions of similar company sales in 2024, the value of VERLAINE AUTOMOBILES is estimated at 973 743 € (range 411 935€ - 1 611 353€). With an EBITDA of 384 401€, 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.