ACTIVE DEVELOPPEMENT : revenue, balance sheet and financial ratios

In 2024, ACTIVE DEVELOPPEMENT achieves revenue of 3.6 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +11.8%. Vs 2023, growth of +18% (3.0 M€ -> 3.6 M€). After deducting consumption (631 k€), gross margin stands at 3.0 M€, i.e. a rate of 82%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 281 k€, representing 7.8% of revenue. Warning negative scissor effect: despite revenue change (+18%), EBITDA varies by -36%, reducing margin by 6.5 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 226 k€, i.e. 6.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 21%. 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 64%. 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 1.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 308.15. 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 1.0x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 65 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 85 days. Favorable situation: supplier credit is longer than customer credit by 20 days. Overall, WCR represents 61 days of revenue, i.e. 605 k€ to permanently finance. Over 2016-2024, WCR increased by +6815%, requiring additional financing.

Based on 120 transactions of similar company sales (all years), the value of ACTIVE DEVELOPPEMENT is estimated at 703 073 € (range 343 625€ - 1 845 572€). With an EBITDA of 281 063€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.27x (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.