CAPEFRONT CONSULTING : revenue, balance sheet and financial ratios

In 2024, CAPEFRONT CONSULTING achieves revenue of 4.5 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +29.2%. Vs 2023, growth of +10% (4.1 M€ -> 4.5 M€). After deducting consumption (0 €), gross margin stands at 4.5 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 107 k€, representing 2.4% of revenue. Warning negative scissor effect: despite revenue change (+10%), EBITDA varies by -77%, reducing margin by 9.2 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 126 k€, i.e. 2.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -320%. 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 -9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.7 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 124.45. 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 39.7x. 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: 199 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 115 days. The gap of 84 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 110 days of revenue, i.e. 1.4 M€ to permanently finance. Over 2016-2024, WCR increased by +312%, requiring additional financing.

Based on 147 transactions of similar company sales (all years), the value of CAPEFRONT CONSULTING is estimated at 265 558 € (range 157 433€ - 561 201€). With an EBITDA of 107 473€, the sector multiple of 2.0x is applied. The price/revenue ratio is 0.08x (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.