SOCIETE TORRES BERNAUDON : revenue, balance sheet and financial ratios

In 2020, SOCIETE TORRES BERNAUDON achieves revenue of 27 k€. Significant drop of -24% vs 2019. After deducting consumption (0 €), gross margin stands at 27 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 1 k€, representing 5.2% of revenue. Warning negative scissor effect: despite revenue change (-24%), EBITDA varies by -84%, reducing margin by 20.0 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -8 k€ (-29.4% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at -523%. 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 -18%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 72.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 304.92. 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 16.4x. 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: 45 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 2 days. The gap of 43 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 602 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 484 days of revenue, i.e. 36 k€ to permanently finance.

Based on 138 transactions of similar company sales (all years), the value of SOCIETE TORRES BERNAUDON is estimated at 7 183 € (range 2 427€ - 11 505€). With an EBITDA of 1 422€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.41x (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.