RTO RACCORD ET TUBE DE L'OUEST : revenue, balance sheet and financial ratios

In 2024, RTO RACCORD ET TUBE DE L'OUEST achieves revenue of 17.7 M€. Revenue is growing positively over 7 years (CAGR: +3.3%). Slight decline of -7% vs 2022. After deducting consumption (13.7 M€), gross margin stands at 4.0 M€, i.e. a rate of 23%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 270 k€, representing 1.5% of revenue. Warning negative scissor effect: despite revenue change (-7%), EBITDA varies by -83%, reducing margin by 6.7 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 211 k€, i.e. 1.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 73%. 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 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 1.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 382.74. 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: 42 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 48 days. Favorable situation: supplier credit is longer than customer credit by 6 days. Inventory turnover is 87 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 122 days of revenue, i.e. 6.0 M€ to permanently finance. Over 2016-2024, WCR increased by +53%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (32 transactions). This range of 889 941€ to 2 204 386€ is provided for information purposes only and requires in-depth analysis to be confirmed.