SORMA SOCIETE DE REPRESENTATION DE MATERIELS AERAULIQUES : revenue, balance sheet and financial ratios

In 2019, SORMA SOCIETE DE REPRESENTATION DE MATERIELS AERAULIQUES achieves revenue of 173 k€. Revenue is declining over the period 2016-2019 (CAGR: -55.8%). Significant drop of -31% vs 2018. After deducting consumption (85 k€), gross margin stands at 88 k€, i.e. a rate of 51%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 10 k€, representing 5.8% of revenue. Warning negative scissor effect: despite revenue change (-31%), EBITDA varies by -68%, reducing margin by 6.8 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -8 k€ (-4.5% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 15%. 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 83%. 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 23.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 1332.67. 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 209.3x. 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: 73 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 42 days. The gap of 31 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 63 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 164 days of revenue, i.e. 79 k€ to permanently finance. Notable WCR improvement over the period (-82%), freeing up cash.

Indicative estimate only : the number of comparable transactions in this sector is limited (48 transactions). This range of 7 721€ to 28 293€ is provided for information purposes only and requires in-depth analysis to be confirmed.