DECO CENTER 95 : revenue, balance sheet and financial ratios

In 2024, DECO CENTER 95 achieves revenue of 5.9 M€. Revenue is growing positively over 9 years (CAGR: +2.2%). Significant drop of -14% vs 2023. After deducting consumption (2.8 M€), gross margin stands at 3.1 M€, i.e. a rate of 53%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 270 k€, representing 4.6% of revenue. Warning negative scissor effect: despite revenue change (-14%), EBITDA varies by -57%, reducing margin by 4.6 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 26 k€, i.e. 0.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 248%. 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 16%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 12.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 121.07. 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 6.8x. 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: 3 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 35 days. Excellent situation: suppliers finance 32 days of the operating cycle (retail model). Inventory turnover is 40 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 48 days of revenue, i.e. 780 k€ to permanently finance. Over 2016-2024, WCR increased by +535%, requiring additional financing.

Based on 61 transactions of similar company sales in 2024, the value of DECO CENTER 95 is estimated at 1 051 106 € (range 758 351€ - 1 544 696€). With an EBITDA of 270 350€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.22x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.