ARCHES DEMOLITION : revenue, balance sheet and financial ratios

In 2024, ARCHES DEMOLITION achieves revenue of 3.5 M€. Activity remains stable over the period (CAGR: -0.8%). Significant drop of -13% vs 2023. After deducting consumption (57 k€), gross margin stands at 3.5 M€, i.e. a rate of 98%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 714 k€, representing 20.3% of revenue. Warning negative scissor effect: despite revenue change (-13%), EBITDA varies by -24%, reducing margin by 2.8 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 454 k€, i.e. 12.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 6%. 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 80%. 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 0.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 18.5% 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 701.34. 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 1.2x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 43 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 36 days. The company must finance 7 days of gap between collections and payments. Inventory turnover is 18 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 54 days of revenue, i.e. 529 k€ to permanently finance. Notable WCR improvement over the period (-37%), freeing up cash.

Based on 136 transactions of similar company sales (all years), the value of ARCHES DEMOLITION is estimated at 1 109 300 € (range 322 797€ - 2 547 686€). With an EBITDA of 714 420€, the sector multiple of 1.7x is applied. The price/revenue ratio is 0.21x (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.