APPLICATION ELECTRO MECANIQUE : revenue, balance sheet and financial ratios

In 2024, APPLICATION ELECTRO MECANIQUE achieves revenue of 9.2 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.3%. Slight decline of -5% vs 2023. After deducting consumption (3.1 M€), gross margin stands at 6.2 M€, i.e. a rate of 67%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 687 k€, representing 7.4% of revenue. Warning negative scissor effect: despite revenue change (-5%), EBITDA varies by -36%, reducing margin by 3.5 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 361 k€, i.e. 3.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 67%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 44%. 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 6.3 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 5.3% 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 373.43. 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 15.5x. 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: 60 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 48 days. The company must finance 12 days of gap between collections and payments. Inventory turnover is 79 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 309 days of revenue, i.e. 7.9 M€ to permanently finance. Over 2016-2024, WCR increased by +83%, requiring additional financing.

Based on 197 transactions of similar company sales (all years), the value of APPLICATION ELECTRO MECANIQUE is estimated at 1 765 257 € (range 722 166€ - 3 867 803€). With an EBITDA of 686 980€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.28x (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.