ARTOIS CONSTRUCTION : revenue, balance sheet and financial ratios

In 2024, ARTOIS CONSTRUCTION achieves revenue of 10.5 M€. Revenue is growing positively over 8 years (CAGR: +4.0%). Significant drop of -29% vs 2023. After deducting consumption (2.5 M€), gross margin stands at 8.0 M€, i.e. a rate of 76%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 225 k€, representing 2.1% of revenue. Warning negative scissor effect: despite revenue change (-29%), EBITDA varies by -75%, reducing margin by 4.0 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 369 k€, i.e. 3.5% 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 46%. 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 0.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 2.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 228.17. 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 35.1x. 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: 74 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 81 days. Favorable situation: supplier credit is longer than customer credit by 7 days. Inventory turnover is 8 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 157 days of revenue, i.e. 4.6 M€ to permanently finance. Over 2016-2024, WCR increased by +30%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of ARTOIS CONSTRUCTION is estimated at 942 061 € (range 459 007€ - 2 522 906€). With an EBITDA of 225 328€, 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.