EAST TARGET INTERNATIONAL : revenue, balance sheet and financial ratios

In 2021, EAST TARGET INTERNATIONAL achieves revenue of 387 k€. Over the period 2016-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +19.8%. Vs 2020, growth of +66% (234 k€ -> 387 k€). After deducting consumption (257 k€), gross margin stands at 130 k€, i.e. a rate of 34%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 40 k€, representing 10.4% of revenue. Positive scissor effect: EBITDA margin improves by +6.2 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 32 k€, i.e. 8.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 17%. 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 7%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.5% 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 181.15. 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 0.1x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 43 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 25 days. The company must finance 18 days of gap between collections and payments. Inventory turnover is 19 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 15 days of revenue, i.e. 16 k€ to permanently finance. Over 2016-2021, WCR increased by +379%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (36 transactions). This range of 33 800€ to 157 065€ is provided for information purposes only and requires in-depth analysis to be confirmed.