DIAMOND RESORTS (EUROPE) LIMITED : revenue, balance sheet and financial ratios

In 2024, DIAMOND RESORTS (EUROPE) LIMITED achieves revenue of 8.7 M€. Revenue is growing positively over 8 years (CAGR: +2.8%). Vs 2023, growth of +11% (7.8 M€ -> 8.7 M€). After deducting consumption (17 k€), gross margin stands at 8.6 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 828 k€, representing 9.6% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 624 k€, i.e. 7.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -1092%. 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 -9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 24.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 5.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 1894.36. 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 121.3x. 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: 2 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 4 days. Favorable situation: supplier credit is longer than customer credit by 2 days. Inventory turnover is 2 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 422 days of revenue, i.e. 10.2 M€ to permanently finance. Over 2014-2024, WCR increased by +24%, requiring additional financing.

Based on 261 transactions of similar company sales (all years), the value of DIAMOND RESORTS (EUROPE) LIMITED is estimated at 4 898 838 € (range 2 869 515€ - 9 361 138€). With an EBITDA of 827 907€, the sector multiple of 5.3x is applied. The price/revenue ratio is 0.75x (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.