DENJEAN ARIEGE GRANULATS : revenue, balance sheet and financial ratios

In 2024, DENJEAN ARIEGE GRANULATS achieves revenue of 6.0 M€. Revenue is growing positively over 8 years (CAGR: +2.3%). Vs 2023, growth of +12% (5.4 M€ -> 6.0 M€). After deducting consumption (1.9 M€), gross margin stands at 4.1 M€, i.e. a rate of 69%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 896 k€, representing 14.9% of revenue. Warning negative scissor effect: despite revenue change (+12%), EBITDA varies by -21%, reducing margin by 6.2 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 295 k€, i.e. 4.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 449%. 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 12%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 12.4% 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 159.84. 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 24.6x. 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: 42 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 69 days. Favorable situation: supplier credit is longer than customer credit by 27 days. Inventory turnover is 125 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 157 days of revenue, i.e. 2.6 M€ to permanently finance.

Based on 95 transactions of similar company sales (all years), the value of DENJEAN ARIEGE GRANULATS is estimated at 1 016 549 € (range 342 373€ - 5 253 381€). With an EBITDA of 896 259€, the sector multiple of 1.4x is applied. The price/revenue ratio is 0.17x (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.