TSC : revenue, balance sheet and financial ratios

In 2024, TSC achieves revenue of 791 k€. Revenue is declining over the period 2021-2024 (CAGR: -7.7%). Significant drop of -32% vs 2023. After deducting consumption (76 k€), gross margin stands at 715 k€, i.e. a rate of 90%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 16 k€, representing 2.0% of revenue. Warning negative scissor effect: despite revenue change (-32%), EBITDA varies by -71%, reducing margin by 2.7 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -378 € (-0.0% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 253%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. 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 130.72. 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 7.3x. 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: 152 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 85 days. The gap of 67 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 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 94 days of revenue, i.e. 206 k€ to permanently finance. Notable WCR improvement over the period (-22%), freeing up cash.

Based on 113 transactions of similar company sales (all years), the value of TSC is estimated at 69 478 € (range 36 599€ - 178 941€). With an EBITDA of 16 153€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.11x (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.