CABRAL GONCALVES INSTALLATION ELECTRIQUE : revenue, balance sheet and financial ratios

In 2019, CABRAL GONCALVES INSTALLATION ELECTRIQUE achieves revenue of 211 k€. Revenue is growing positively over 4 years (CAGR: +2.0%). Slight decline of -3% vs 2018. After deducting consumption (64 k€), gross margin stands at 148 k€, i.e. a rate of 70%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 40 k€, representing 19.1% of revenue. Positive scissor effect: EBITDA margin improves by +12.5 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 39 k€, i.e. 18.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 18%. 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 59%. 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 18.4% 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 335.31. 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 0.5x. 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: 144 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 59 days. The gap of 85 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 55 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 155 days of revenue, i.e. 91 k€ to permanently finance. Over 2016-2019, WCR increased by +25%, requiring additional financing.

Based on 53 transactions of similar company sales in 2019, the value of CABRAL GONCALVES INSTALLATION ELECTRIQUE is estimated at 30 657 € (range 14 602€ - 67 031€). With an EBITDA of 40 252€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.17x (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.