AFONSO DA COSTA ELECTRICITE : revenue, balance sheet and financial ratios

In 2019, AFONSO DA COSTA ELECTRICITE achieves revenue of 230 k€. Over the period 2016-2019, the company shows strong growth with a CAGR (compound annual growth rate) of +9.3%. Vs 2018, growth of +24% (186 k€ -> 230 k€). After deducting consumption (70 k€), gross margin stands at 159 k€, i.e. a rate of 69%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 18 k€, representing 7.9% of revenue. Positive scissor effect: EBITDA margin improves by +12.6 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 16 k€, i.e. 6.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 4%. 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 71%. 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 0.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 375.67. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 18 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 34 days. Favorable situation: supplier credit is longer than customer credit by 16 days. Overall, WCR represents 13 days of revenue, i.e. 8 k€ to permanently finance. Notable WCR improvement over the period (-25%), freeing up cash.

Based on 53 transactions of similar company sales in 2019, the value of AFONSO DA COSTA ELECTRICITE is estimated at 20 365 € (range 9 388€ - 41 853€). With an EBITDA of 18 226€, the sector multiple of 0.7x 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.
Medium reliability: estimate to be confirmed with in-depth analysis.