SNTN - SOCIETE NOUVELLE DE TREFILERIE NORMANDE : revenue, balance sheet and financial ratios

In 2024, SNTN - SOCIETE NOUVELLE DE TREFILERIE NORMANDE achieves revenue of 26.7 M€. Revenue is growing positively over 9 years (CAGR: +1.6%). Slight decline of -1% vs 2023. After deducting consumption (15.6 M€), gross margin stands at 11.2 M€, i.e. a rate of 42%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4.2 M€, representing 15.8% 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 3.1 M€, i.e. 11.6% 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 77%. 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 11.3% 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 303.63. 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 0.6x. 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: 35 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 42 days. Favorable situation: supplier credit is longer than customer credit by 7 days. Inventory turnover is 83 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 92 days of revenue, i.e. 6.8 M€ to permanently finance. Over 2016-2024, WCR increased by +74%, requiring additional financing.