EXPERTISE & CONCEPT SUD-OUEST : revenue, balance sheet and financial ratios

In 2024, EXPERTISE & CONCEPT SUD-OUEST achieves revenue of 19.2 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +40.8%. After deducting consumption (0 €), gross margin stands at 19.2 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 988 k€, representing 5.1% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 721 k€, i.e. 3.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 39%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 43%. 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 3.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 112.65. 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 7.9x. 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: 53 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 112 days. Excellent situation: suppliers finance 59 days of the operating cycle (retail model). Inventory turnover is 26 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 36 days of revenue, i.e. 1.9 M€ to permanently finance. Over 2016-2024, WCR increased by +2076%, requiring additional financing.

Based on 209 transactions of similar company sales (all years), the value of EXPERTISE & CONCEPT SUD-OUEST is estimated at 5 830 045 € (range 1 817 509€ - 14 467 006€). With an EBITDA of 987 580€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.87x (in line with sector norms). 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.