ABCD SERVICES : revenue, balance sheet and financial ratios

In 2024, ABCD SERVICES achieves revenue of 1.6 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +16.6%. Vs 2023, growth of +50% (1.1 M€ -> 1.6 M€). After deducting consumption (153 k€), gross margin stands at 1.5 M€, i.e. a rate of 91%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 588 k€, representing 35.8% of revenue. Positive scissor effect: EBITDA margin improves by +16.7 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 454 k€, i.e. 27.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 112%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 45%. 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 9.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 37.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 1271.07. 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 74.2x. 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: 121 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 48 days. The gap of 73 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 9 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 1012 days of revenue, i.e. 4.6 M€ to permanently finance. Over 2016-2024, WCR increased by +178%, requiring additional financing.

Based on 117 transactions of similar company sales in 2024, the value of ABCD SERVICES is estimated at 1 650 138 € (range 1 058 074€ - 3 276 270€). With an EBITDA of 587 955€, the sector multiple of 4.0x is applied. The price/revenue ratio is 0.53x (in line with sector norms). 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.