CHARLATTE RESERVOIRS : revenue, balance sheet and financial ratios

In 2024, CHARLATTE RESERVOIRS achieves revenue of 16.4 M€. Revenue is growing positively over 9 years (CAGR: +1.6%). Slight decline of -8% vs 2023. After deducting consumption (5.3 M€), gross margin stands at 11.1 M€, i.e. a rate of 68%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.6 M€, representing 9.9% of revenue. Warning negative scissor effect: despite revenue change (-8%), EBITDA varies by -52%, reducing margin by 9.0 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.3 M€, i.e. 13.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1%. 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 0.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 251.26. 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 0.2x. 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: 69 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 85 days. Favorable situation: supplier credit is longer than customer credit by 16 days. Inventory turnover is 111 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 196 days of revenue, i.e. 8.9 M€ to permanently finance. Over 2016-2024, WCR increased by +32%, requiring additional financing.

Based on 276 transactions of similar company sales (all years), the value of CHARLATTE RESERVOIRS is estimated at 3 641 929 € (range 1 283 957€ - 8 837 051€). With an EBITDA of 1 629 102€, the sector multiple of 1.7x is applied. The price/revenue ratio is 0.18x (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.