AIRWAYS AVIATION ACADEMY : revenue, balance sheet and financial ratios

In 2023, AIRWAYS AVIATION ACADEMY achieves revenue of 7.1 M€. Over the period 2020-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +5.2%. Slight decline of -5% vs 2022. After deducting consumption (514 k€), gross margin stands at 6.6 M€, i.e. a rate of 93%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 488 k€, representing 6.9% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 14 k€, i.e. 0.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -135%. 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 -8%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.3% 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 130.44. 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. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 177 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 83 days. The gap of 94 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 24 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-98 days): operations structurally generate cash. Over 2020-2023, WCR increased by +42%, requiring additional financing.

Based on 134 transactions of similar company sales (all years), the value of AIRWAYS AVIATION ACADEMY is estimated at 1 294 897 € (range 447 552€ - 2 901 707€). With an EBITDA of 488 108€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.36x (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.