CHAUDRONNERIE LORRAINE : revenue, balance sheet and financial ratios

In 2024, CHAUDRONNERIE LORRAINE achieves revenue of 703 k€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +61.1%. Significant drop of -37% vs 2023. After deducting consumption (121 k€), gross margin stands at 582 k€, i.e. a rate of 83%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -2 k€, representing -0.3% of revenue. Warning negative scissor effect: despite revenue change (-37%), EBITDA varies by -103%, reducing margin by 5.6 pts. This reflects costs rising faster than revenue. Negative EBITDA means operations do not cover current expenses: concerning situation. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 17 k€, i.e. 2.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 26%. 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 17.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 262.16. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 80 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 34 days. The gap of 46 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 24 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 105 days of revenue, i.e. 205 k€ to permanently finance. Over 2016-2024, WCR increased by +286%, requiring additional financing.

Based on 56 transactions of similar company sales (all years), the value of CHAUDRONNERIE LORRAINE is estimated at 67 239 € (range 38 051€ - 116 262€). The price/revenue ratio is 0.13x (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.