NOVIGO CONSULTING : revenue, balance sheet and financial ratios

In 2018, NOVIGO CONSULTING achieves revenue of 399 k€. Activity remains stable over the period (CAGR: -1.1%). Slight decline of -4% vs 2017. After deducting consumption (0 €), gross margin stands at 399 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 34 k€, representing 8.6% of revenue. Warning negative scissor effect: despite revenue change (-4%), EBITDA varies by -49%, reducing margin by 7.6 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 28 k€, i.e. 7.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2%. 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 85%. 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 7.1% 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 618.98. 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: 111 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 35 days. The gap of 76 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 113 days of revenue, i.e. 125 k€ to permanently finance. Over 2014-2018, WCR increased by +171%, requiring additional financing.

Based on 69 transactions of similar company sales in 2018, the value of NOVIGO CONSULTING is estimated at 115 750 € (range 57 406€ - 246 026€). With an EBITDA of 34 241€, the sector multiple of 3.1x is applied. The price/revenue ratio is 0.33x (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.