CONSEIL ETUDES REALISATIONS COMPOSITIONS IMPACTS SERVICES : revenue, balance sheet and financial ratios

In 2019, CONSEIL ETUDES REALISATIONS COMPOSITIONS IMPACTS SERVICES achieves revenue of 1.9 M€. Revenue is declining over the period 2015-2019 (CAGR: -12.2%). Slight decline of -5% vs 2018. After deducting consumption (226 k€), gross margin stands at 1.6 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 51 k€, representing 2.8% of revenue. Warning negative scissor effect: despite revenue change (-5%), EBITDA varies by -82%, reducing margin by 11.7 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 108 k€, i.e. 5.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 62%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 39%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 24.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 220.05. 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 24.5x. 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: 171 days. The gap of 247 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 11 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 415 days of revenue, i.e. 2.1 M€ to permanently finance. Over 2015-2019, WCR increased by +25%, requiring additional financing.

Based on 125 transactions of similar company sales (all years), the value of CONSEIL ETUDES REALISATIONS COMPOSITIONS IMPACTS SERVICES is estimated at 336 443 € (range 144 288€ - 563 039€). With an EBITDA of 51 364€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.35x (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.