DEPANNAGE LEVAGE SERVICES : revenue, balance sheet and financial ratios

In 2019, DEPANNAGE LEVAGE SERVICES achieves revenue of 1.4 M€. Revenue is growing positively over 4 years (CAGR: +3.1%). Significant drop of -17% vs 2018. After deducting consumption (230 k€), gross margin stands at 1.2 M€, i.e. a rate of 84%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 285 k€, representing 19.7% of revenue. Warning negative scissor effect: despite revenue change (-17%), EBITDA varies by -44%, reducing margin by 9.4 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 106 k€, i.e. 7.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 105%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 40%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 15.7% 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 282.39. 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 1.9x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 61 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 38 days. The company must finance 23 days of gap between collections and payments. Inventory turnover is 13 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 61 days of revenue, i.e. 245 k€ to permanently finance. Over 2016-2019, WCR increased by +47%, requiring additional financing.

Based on 156 transactions of similar company sales in 2019, the value of DEPANNAGE LEVAGE SERVICES is estimated at 902 809 € (range 322 071€ - 2 001 202€). With an EBITDA of 284 912€, the sector multiple of 4.5x is applied. The price/revenue ratio is 0.36x (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.