OFFICINE GENERALE : revenue, balance sheet and financial ratios

In 2022, OFFICINE GENERALE achieves revenue of 16.3 M€. Over the period 2017-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +39.3%. Vs 2021, growth of +64% (10.0 M€ -> 16.3 M€). After deducting consumption (2.6 M€), gross margin stands at 13.7 M€, i.e. a rate of 84%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.7 M€, representing 16.6% of revenue. Warning negative scissor effect: despite revenue change (+64%), EBITDA varies by -11%, reducing margin by 13.8 pts. This reflects costs rising faster than 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 114 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 68%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 46%. 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 3.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 10.8% 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 344.00. 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 7.1x. 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: 120 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 84 days. The gap of 36 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 106 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 239 days of revenue, i.e. 10.8 M€ to permanently finance. Over 2017-2022, WCR increased by +1016%, requiring additional financing.

Based on 75 transactions of similar company sales in 2022, the value of OFFICINE GENERALE is estimated at 6 025 929 € (range 2 792 536€ - 12 214 302€). With an EBITDA of 2 699 431€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.52x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.