CONNECT DATA : revenue, balance sheet and financial ratios

In 2024, CONNECT DATA achieves revenue of 14.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +53.9%. Significant drop of -24% vs 2023. After deducting consumption (11.3 M€), gross margin stands at 3.4 M€, i.e. a rate of 23%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 511 k€, representing 3.5% of revenue. Warning negative scissor effect: despite revenue change (-24%), EBITDA varies by -64%, reducing margin by 3.9 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 402 k€, i.e. 2.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 64%. 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 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 2.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 298.49. 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 0.0x. 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: 73 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 65 days. The company must finance 8 days of gap between collections and payments. Inventory turnover is 42 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 121 days of revenue, i.e. 4.9 M€ to permanently finance. Over 2016-2024, WCR increased by +3420%, requiring additional financing.

Based on 131 transactions of similar company sales (all years), the value of CONNECT DATA is estimated at 3 079 130 € (range 1 237 558€ - 5 890 793€). With an EBITDA of 511 139€, 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.