SOCIETE LUCEENNE DE TRANSPORT MASSOUF : revenue, balance sheet and financial ratios

In 2018, SOCIETE LUCEENNE DE TRANSPORT MASSOUF achieves revenue of 160 k€. Significant drop of -21% vs 2016. After deducting consumption (0 €), gross margin stands at 160 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 13 k€, representing 8.1% of revenue. Positive scissor effect: EBITDA margin improves by +16.3 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 11 k€, i.e. 6.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 12%. 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 5%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.4% 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 185.90. 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 4.9x. 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: 153 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 80 days. The gap of 73 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 139 days of revenue, i.e. 62 k€ to permanently finance.

Based on 53 transactions of similar company sales in 2018, the value of SOCIETE LUCEENNE DE TRANSPORT MASSOUF is estimated at 26 682 € (range 12 866€ - 58 535€). With an EBITDA of 12 993€, the sector multiple of 2.3x is applied. The price/revenue ratio is 0.17x (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.