M&D PROMOTION INVESTISSEMENT : revenue, balance sheet and financial ratios

In 2021, M&D PROMOTION INVESTISSEMENT achieves revenue of 772 k€. Over the period 2016-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +15.3%. Vs 2020, growth of +203% (255 k€ -> 772 k€). After deducting consumption (0 €), gross margin stands at 772 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 134 k€, representing 17.4% of revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 225 k€, i.e. 29.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 76%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 41%. 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 5.3 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 29.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 1336.54. 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 2.1x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 410 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 23 days. The gap of 387 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 219 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 971 days of revenue, i.e. 2.1 M€ to permanently finance. Over 2016-2021, WCR increased by +37%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (20 transactions). This range of 1 316 747€ to 4 123 139€ is provided for information purposes only and requires in-depth analysis to be confirmed.