ALLIAGE RENT EUROPE : revenue, balance sheet and financial ratios

In 2024, ALLIAGE RENT EUROPE achieves revenue of 2.2 M€. Over the period 2022-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +23.6%. After deducting consumption (1.5 M€), gross margin stands at 727 k€, i.e. a rate of 33%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 278 k€, representing 12.7% of revenue. This level of operating margin is satisfactory for the sector. Net income is negative at -18 k€ (-0.8% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 4449%. 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 2%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 9.7% 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 593.10. 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 25.4x. 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: 58 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 10 days. The gap of 48 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 40 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 123 days of revenue, i.e. 749 k€ to permanently finance.

Based on 276 transactions of similar company sales (all years), the value of ALLIAGE RENT EUROPE is estimated at 3 988 628 € (range 868 776€ - 5 311 630€). With an EBITDA of 277 690€, the sector multiple of 11.9x is applied. The price/revenue ratio is 2.33x (premium 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.