ALPES CONFORT PROVENCE : revenue, balance sheet and financial ratios

In 2021, ALPES CONFORT PROVENCE achieves revenue of 1.0 M€. Activity remains stable over the period (CAGR: -1.4%). Vs 2020: +9%. After deducting consumption (468 k€), gross margin stands at 535 k€, i.e. a rate of 53%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 144 k€, representing 14.3% of revenue. Warning negative scissor effect: despite revenue change (+9%), EBITDA varies by -6%, reducing margin by 2.2 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 96 k€, i.e. 9.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 29%. 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 38%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 11.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 146.77. 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 3.0x. Financial charges are adequately covered by operations.

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: 14 days. Favorable situation: supplier credit is longer than customer credit by 9 days. Inventory turnover is 5 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-33 days): operations structurally generate cash. Notable WCR improvement over the period (-316%), freeing up cash.

Based on 264 transactions of similar company sales (all years), the value of ALPES CONFORT PROVENCE is estimated at 261 354 € (range 96 787€ - 493 005€). With an EBITDA of 143 507€, the sector multiple of 2.1x is applied. The price/revenue ratio is 0.18x (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.