AQUITAINE LIMOUSIN CONSTRUCTIONS : revenue, balance sheet and financial ratios

In 2024, AQUITAINE LIMOUSIN CONSTRUCTIONS achieves revenue of 6.7 M€. Revenue is declining over the period 2017-2024 (CAGR: -6.1%). Significant drop of -32% vs 2023. After deducting consumption (280 k€), gross margin stands at 6.4 M€, i.e. a rate of 96%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 503 k€, representing 7.5% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 314 k€, i.e. 4.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 306%. 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 11%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 176.01. 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 8.1x. 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: 140 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 66 days. The gap of 74 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 92 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 176 days of revenue, i.e. 3.3 M€ to permanently finance. Over 2017-2024, WCR increased by +148%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of AQUITAINE LIMOUSIN CONSTRUCTIONS is estimated at 1 295 159 € (range 552 570€ - 2 638 689€). With an EBITDA of 503 474€, 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.