BH PATRIMOINE : revenue, balance sheet and financial ratios

In 2016, BH PATRIMOINE achieves revenue of 23 k€. Revenue is growing positively over 4 years (CAGR: +3.6%). Slight decline of -1% vs 2015. After deducting consumption (0 €), gross margin stands at 23 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 18 k€, representing 78.4% of revenue. Positive scissor effect: EBITDA margin improves by +12.1 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 13 k€, i.e. 59.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 69%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 40%. 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 3.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 59.1% 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 2789.23. 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 11.4x. 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: 27 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 172 days. Excellent situation: suppliers finance 145 days of the operating cycle (retail model). Inventory turnover is 1423 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1586 days of revenue, i.e. 99 k€ to permanently finance. Over 2013-2016, WCR increased by +26%, requiring additional financing.

Based on 1762 transactions of similar company sales (all years), the value of BH PATRIMOINE is estimated at 60 185 € (range 21 250€ - 118 514€). With an EBITDA of 17 662€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.65x (in line with sector norms). 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.