DAVIS MONGAZONS : revenue, balance sheet and financial ratios

In 2024, DAVIS MONGAZONS achieves revenue of 22.1 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +11.5%. Slight decline of -9% vs 2023. After deducting consumption (18.5 M€), gross margin stands at 3.6 M€, i.e. a rate of 16%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 349 k€, representing 1.6% of revenue. Warning negative scissor effect: despite revenue change (-9%), EBITDA varies by -75%, reducing margin by 4.1 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 305 k€, i.e. 1.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 30%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 47%. 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 5.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 0.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 243.83. 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 37.1x. 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: 26 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 41 days. Favorable situation: supplier credit is longer than customer credit by 15 days. Inventory turnover is 55 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 87 days of revenue, i.e. 5.3 M€ to permanently finance. Over 2016-2024, WCR increased by +73%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of DAVIS MONGAZONS is estimated at 1 505 457 € (range 676 895€ - 2 803 320€). With an EBITDA of 349 398€, the sector multiple of 1.6x is applied. The price/revenue ratio is 0.16x (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.