AVANCE TECHNOLOGIQUE CHOLETAISE : revenue, balance sheet and financial ratios

In 2024, AVANCE TECHNOLOGIQUE CHOLETAISE achieves revenue of 8.0 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.8%. Slight decline of -4% vs 2023. After deducting consumption (2.2 M€), gross margin stands at 5.9 M€, i.e. a rate of 73%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 706 k€, representing 8.8% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 370 k€, i.e. 4.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 24%. 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 57%. 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 0.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 257.27. 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 0.9x. 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: 63 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 38 days. The company must finance 25 days of gap between collections and payments. Inventory turnover is 58 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 93 days of revenue, i.e. 2.1 M€ to permanently finance. Over 2016-2024, WCR increased by +24%, requiring additional financing.

Based on 56 transactions of similar company sales (all years), the value of AVANCE TECHNOLOGIQUE CHOLETAISE is estimated at 817 734 € (range 501 587€ - 1 756 997€). With an EBITDA of 706 165€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.13x (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.