COMPOSTIERE DE LA SOUCHE : revenue, balance sheet and financial ratios

In 2024, COMPOSTIERE DE LA SOUCHE achieves revenue of 1.3 M€. Over the period 2020-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +24.9%. Vs 2023: +7%. After deducting consumption (153 k€), gross margin stands at 1.1 M€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 413 k€, representing 32.9% of revenue. Positive scissor effect: EBITDA margin improves by +13.4 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 81 k€, i.e. 6.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 805%. 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 9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 12.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 19.5% 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 216.95. 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 29.3x. 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: 418 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 119 days. The gap of 299 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 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 434 days of revenue, i.e. 1.5 M€ to permanently finance. Over 2020-2024, WCR increased by +303%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (44 transactions). This range of 116 630€ to 923 315€ is provided for information purposes only and requires in-depth analysis to be confirmed.