VOLCOM SAS : revenue, balance sheet and financial ratios

In 2024, VOLCOM SAS achieves revenue of 54.9 M€. Revenue is growing positively over 9 years (CAGR: +3.0%). Slight decline of -2% vs 2023. After deducting consumption (21.7 M€), gross margin stands at 33.2 M€, i.e. a rate of 61%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 5.7 M€, representing 10.4% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 370 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 8%. 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 62%. 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 0.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 238.31. 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 9.8x. 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: 26 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. Favorable situation: supplier credit is longer than customer credit by 28 days. Inventory turnover is 81 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 131 days of revenue, i.e. 20.0 M€ to permanently finance. Over 2016-2024, WCR increased by +85%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of VOLCOM SAS is estimated at 9 969 495 € (range 4 371 027€ - 22 900 238€). With an EBITDA of 5 727 224€, the sector multiple of 2.4x 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.