AMENAGEMENTS RENOVATIONS ET DECORATIONS INTERIEURES : revenue, balance sheet and financial ratios

In 2023, AMENAGEMENTS RENOVATIONS ET DECORATIONS INTERIEURES achieves revenue of 1.3 M€. Revenue is growing positively over 9 years (CAGR: +4.0%). Significant drop of -19% vs 2022. After deducting consumption (238 k€), gross margin stands at 1.1 M€, i.e. a rate of 82%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 39 k€, representing 2.9% of revenue. Warning negative scissor effect: despite revenue change (-19%), EBITDA varies by -70%, reducing margin by 5.0 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 20 k€, i.e. 1.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 3%. 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 57%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 2.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 211.56. 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 0.3x. 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: 146 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 59 days. The gap of 87 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 37 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 158 days of revenue, i.e. 587 k€ to permanently finance. Over 2015-2023, WCR increased by +62%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (47 transactions). This range of 62 105€ to 171 016€ is provided for information purposes only and requires in-depth analysis to be confirmed.