AUGUST'EVENTS : revenue, balance sheet and financial ratios

In 2019, AUGUST'EVENTS achieves revenue of 519 k€. Over the period 2017-2019, the company shows strong growth with a CAGR (compound annual growth rate) of +51.1%. Vs 2018, growth of +64% (316 k€ -> 519 k€). After deducting consumption (30 k€), gross margin stands at 489 k€, i.e. a rate of 94%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 76 k€, representing 14.7% of revenue. Warning negative scissor effect: despite revenue change (+64%), EBITDA varies by +2%, reducing margin by 9.0 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 30 k€, i.e. 5.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 50%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 38%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 13.3% 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 156.31. 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 1.0x. 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: 138 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 80 days. The gap of 58 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 122 days of revenue, i.e. 176 k€ to permanently finance. Over 2017-2019, WCR increased by +152%, requiring additional financing.

Based on 69 transactions of similar company sales (all years), the value of AUGUST'EVENTS is estimated at 274 055 € (range 121 080€ - 575 639€). With an EBITDA of 76 061€, the sector multiple of 4.9x is applied. The price/revenue ratio is 0.40x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.