A BETTER CHANCE DIFFUSION : revenue, balance sheet and financial ratios

In 2024, A BETTER CHANCE DIFFUSION achieves revenue of 66 k€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +16.5%. Vs 2022: +2%. After deducting consumption (41 k€), gross margin stands at 25 k€, i.e. a rate of 38%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1 k€, representing 1.5% of revenue. Warning negative scissor effect: despite revenue change (+2%), EBITDA varies by -83%, reducing margin by 7.4 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 670 €, i.e. 1.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 53%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 29%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 10.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 513.96. 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 7.5x. 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: 25 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 23 days. The company must finance 2 days of gap between collections and payments. Inventory turnover is 55 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 112 days of revenue, i.e. 21 k€ to permanently finance. Over 2015-2024, WCR increased by +3594%, requiring additional financing.

Based on 67 transactions of similar company sales (all years), the value of A BETTER CHANCE DIFFUSION is estimated at 4 529 € (range 2 675€ - 13 370€). With an EBITDA of 1 010€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.16x (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.