BUSINESS NETWORK SOLUTIONS : revenue, balance sheet and financial ratios

In 2024, BUSINESS NETWORK SOLUTIONS achieves revenue of 833 k€. Activity remains stable over the period (CAGR: -0.4%). Slight decline of -5% vs 2022. After deducting consumption (0 €), gross margin stands at 833 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 57 k€, representing 6.9% of revenue. Warning negative scissor effect: despite revenue change (-5%), EBITDA varies by -43%, reducing margin by 4.7 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 193 k€, i.e. 23.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 22%. 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 60%. 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 1.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 23.4% 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 353.06. 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 1.2x. 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: 35 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 120 days. Excellent situation: suppliers finance 85 days of the operating cycle (retail model). Overall, WCR represents 460 days of revenue, i.e. 1.1 M€ to permanently finance. Over 2016-2024, WCR increased by +264%, requiring additional financing.

Based on 131 transactions of similar company sales (all years), the value of BUSINESS NETWORK SOLUTIONS is estimated at 356 215 € (range 124 560€ - 784 530€). With an EBITDA of 57 402€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.36x (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.