DEMEURE-INVEST : revenue, balance sheet and financial ratios

In 2023, DEMEURE-INVEST achieves revenue of 461 k€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +5.5%. Significant drop of -36% vs 2022. After deducting consumption (616 k€), gross margin stands at -156 k€, i.e. a rate of -34%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 55 k€, representing 11.9% of revenue. Warning negative scissor effect: despite revenue change (-36%), EBITDA varies by -55%, reducing margin by 4.8 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 249 k€, i.e. 54.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1%. 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 97%. 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 0.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 37.2% 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 4494.23. 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 392.0x. 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: 44 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 75 days. Excellent situation: suppliers finance 31 days of the operating cycle (retail model). Inventory turnover is 2479 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 4080 days of revenue, i.e. 5.2 M€ to permanently finance. Over 2016-2023, WCR increased by +858%, requiring additional financing.

Based on 215 transactions of similar company sales in 2023, the value of DEMEURE-INVEST is estimated at 494 461 € (range 171 591€ - 935 470€). With an EBITDA of 54 740€, the sector multiple of 5.2x is applied. The price/revenue ratio is 0.51x (in line with sector norms). 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.