AUSTRAL TELECOM SERVICES : revenue, balance sheet and financial ratios

In 2024, AUSTRAL TELECOM SERVICES achieves revenue of 19.9 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +30.7%. Vs 2023, growth of +13% (17.7 M€ -> 19.9 M€). After deducting consumption (2.2 M€), gross margin stands at 17.7 M€, i.e. a rate of 89%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.2 M€, representing 11.2% of revenue. Warning negative scissor effect: despite revenue change (+13%), EBITDA varies by -35%, reducing margin by 8.2 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 1.4 M€, i.e. 7.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 12%. 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 56%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.5% 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 231.34. 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 0.6x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 151 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 94 days. The gap of 57 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 15 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 162 days of revenue, i.e. 9.0 M€ to permanently finance. Over 2017-2024, WCR increased by +1146%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (37 transactions). This range of 409 822€ to 1 274 456€ is provided for information purposes only and requires in-depth analysis to be confirmed.