ADVANCED INSTRUMENTS : revenue, balance sheet and financial ratios

In 2024, ADVANCED INSTRUMENTS achieves revenue of 3.7 M€. Over the period 2022-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +51.6%. Vs 2023, growth of +16% (3.1 M€ -> 3.7 M€). After deducting consumption (1.5 M€), gross margin stands at 2.2 M€, i.e. a rate of 60%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 84 k€, representing 2.3% of revenue. Positive scissor effect: EBITDA margin improves by +5.7 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 103 k€, i.e. 2.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2131%. 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 1%. 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 4.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 151.23. 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 75.6x. 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: 309 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 474 days. Excellent situation: suppliers finance 165 days of the operating cycle (retail model). Inventory turnover is 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 336 days of revenue, i.e. 3.4 M€ to permanently finance. Over 2022-2024, WCR increased by +157%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of ADVANCED INSTRUMENTS is estimated at 280 717 € (range 147 429€ - 878 935€). With an EBITDA of 84 175€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (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.