ANGERS MONTPELLIER INVEST HOTELS : revenue, balance sheet and financial ratios

In 2023, ANGERS MONTPELLIER INVEST HOTELS achieves revenue of 3.6 M€. Revenue is growing positively over 8 years (CAGR: +0.8%). Vs 2022, growth of +65% (2.2 M€ -> 3.6 M€). After deducting consumption (278 k€), gross margin stands at 3.4 M€, i.e. a rate of 92%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 760 k€, representing 20.9% of revenue. Positive scissor effect: EBITDA margin improves by +6.0 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 346 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 375%. 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 17%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.1 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 13.0% 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 227.22. 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 9.7x. 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: 4 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 66 days. Excellent situation: suppliers finance 62 days of the operating cycle (retail model). Inventory turnover is 2 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-8 days): operations structurally generate cash. Over 2016-2023, WCR increased by +52%, requiring additional financing.

Based on 108 transactions of similar company sales in 2023, the value of ANGERS MONTPELLIER INVEST HOTELS is estimated at 2 512 034 € (range 993 708€ - 5 574 675€). With an EBITDA of 760 298€, the sector multiple of 3.7x is applied. The price/revenue ratio is 0.74x (in line with sector norms). 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.