ANDRE CONSTRUCTION : revenue, balance sheet and financial ratios

In 2023, ANDRE CONSTRUCTION achieves revenue of 9.8 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +73.3%. Significant drop of -29% vs 2022. After deducting consumption (2.7 M€), gross margin stands at 7.2 M€, i.e. a rate of 73%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 118 k€, representing 1.2% of revenue. Warning negative scissor effect: despite revenue change (-29%), EBITDA varies by -77%, reducing margin by 2.6 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 62 k€, i.e. 0.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 107%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 16%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 128.67. 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 11.1x. 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: 68 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 78 days. Favorable situation: supplier credit is longer than customer credit by 10 days. Inventory turnover is 26 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 101 days of revenue, i.e. 2.8 M€ to permanently finance. Over 2016-2023, WCR increased by +9536%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of ANDRE CONSTRUCTION is estimated at 571 213 € (range 317 560€ - 1 669 933€). With an EBITDA of 118 410€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.11x (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.