CHANAVAT INVESTISSEMENT : revenue, balance sheet and financial ratios

In 2024, CHANAVAT INVESTISSEMENT achieves revenue of 303 k€. Over the period 2022-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +85.9%. Vs 2023, growth of +41% (214 k€ -> 303 k€). After deducting consumption (38 k€), gross margin stands at 265 k€, i.e. a rate of 87%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 31 k€, representing 10.3% of revenue. Positive scissor effect: EBITDA margin improves by +16.6 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 8 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 252%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 27%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 107.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 180.59. 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 68.1x. 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: 190 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 147 days. The gap of 43 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 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 165 days of revenue, i.e. 139 k€ to permanently finance. Notable WCR improvement over the period (-64%), freeing up cash.

Based on 103 transactions of similar company sales in 2024, the value of CHANAVAT INVESTISSEMENT is estimated at 128 524 € (range 35 300€ - 241 761€). With an EBITDA of 31 103€, the sector multiple of 5.0x is applied. The price/revenue ratio is 0.38x (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.