COFINANCE : revenue, balance sheet and financial ratios

In 2024, COFINANCE achieves revenue of 3.0 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +18.3%. Vs 2023, growth of +49% (2.0 M€ -> 3.0 M€). After deducting consumption (3 k€), gross margin stands at 3.0 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 716 k€, representing 23.7% of revenue. Positive scissor effect: EBITDA margin improves by +48.4 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.5 M€, i.e. 48.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1091%. 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 8%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 16.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 48.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 866.54. 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 150.4x. 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: 142 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 97 days. The gap of 45 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 953 days of revenue, i.e. 8.0 M€ to permanently finance. Notable WCR improvement over the period (-34%), freeing up cash.

Based on 131 transactions of similar company sales (all years), the value of COFINANCE is estimated at 3 037 217 € (range 975 287€ - 6 475 163€). With an EBITDA of 716 477€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.36x (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.