AE & CO : revenue, balance sheet and financial ratios

In 2024, AE & CO achieves revenue of 285 k€. Revenue is growing positively over 3 years (CAGR: +1.1%). Vs 2023, growth of +13% (253 k€ -> 285 k€). After deducting consumption (120 k€), gross margin stands at 164 k€, i.e. a rate of 58%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 18 k€, representing 6.5% of revenue. Warning negative scissor effect: despite revenue change (+13%), EBITDA varies by -79%, reducing margin by 28.7 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 374 €, i.e. 0.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 68%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Cash flow represents 6.4% 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 245.62. 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 0.7x. 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: 55 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 104 days. Excellent situation: suppliers finance 49 days of the operating cycle (retail model). Inventory turnover is 116 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 181 days of revenue, i.e. 143 k€ to permanently finance. Over 2022-2024, WCR increased by +91%, requiring additional financing.

Based on 100 transactions of similar company sales (all years), the value of AE & CO is estimated at 97 346 € (range 53 561€ - 152 153€). With an EBITDA of 18 467€, the sector multiple of 5.6x 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.