ALL DENIM COMPANY : revenue, balance sheet and financial ratios

In 2025, ALL DENIM COMPANY achieves revenue of 1.2 M€. Revenue is growing positively over 9 years (CAGR: +4.2%). Significant drop of -12% vs 2024. After deducting consumption (717 k€), gross margin stands at 496 k€, i.e. a rate of 41%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 55 k€, representing 4.6% of revenue. Warning negative scissor effect: despite revenue change (-12%), EBITDA varies by -60%, reducing margin by 5.6 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -3 k€ (-0.2% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 102%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 40%. 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 5.9 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 398.66. 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 11.4x. 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: 5 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 39 days. Excellent situation: suppliers finance 34 days of the operating cycle (retail model). Inventory turnover is 156 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 159 days of revenue, i.e. 536 k€ to permanently finance. Over 2016-2025, WCR increased by +135%, requiring additional financing.

Based on 51 transactions of similar company sales in 2025, the value of ALL DENIM COMPANY is estimated at 127 256 € (range 68 268€ - 520 807€). With an EBITDA of 55 354€, the sector multiple of 1.5x is applied. The price/revenue ratio is 0.17x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.