CINQ-HUITIEMES : revenue, balance sheet and financial ratios

In 2024, CINQ-HUITIEMES achieves revenue of 75.6 M€. Over the period 2019-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.0%. Slight decline of -5% vs 2023. After deducting consumption (42.0 M€), gross margin stands at 33.6 M€, i.e. a rate of 44%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.9 M€, representing 3.8% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.1 M€, i.e. 1.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 25%. 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 4.3 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 298.37. 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 21.3x. 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: 50 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 74 days. Favorable situation: supplier credit is longer than customer credit by 24 days. Inventory turnover is 145 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 284 days of revenue, i.e. 59.6 M€ to permanently finance. Over 2019-2024, WCR increased by +93%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of CINQ-HUITIEMES is estimated at 7 957 113 € (range 3 604 906€ - 19 512 380€). With an EBITDA of 2 884 754€, the sector multiple of 2.4x 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.