DUVERT DEMOLITION : revenue, balance sheet and financial ratios

In 2023, DUVERT DEMOLITION achieves revenue of 818 k€. Revenue is growing positively over 6 years (CAGR: +2.4%). Vs 2022: +5%. After deducting consumption (206 k€), gross margin stands at 612 k€, i.e. a rate of 75%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 45 k€, representing 5.5% of revenue. Warning negative scissor effect: despite revenue change (+5%), EBITDA varies by -41%, reducing margin by 4.2 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -23 k€ (-2.8% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 316%. 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 15%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.3 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 223.41. 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 0.6x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 121 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 56 days. The gap of 65 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 51 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 136 days of revenue, i.e. 310 k€ to permanently finance. Over 2016-2023, WCR increased by +549%, requiring additional financing.

Based on 120 transactions of similar company sales (all years), the value of DUVERT DEMOLITION is estimated at 107 589 € (range 46 223€ - 251 732€). With an EBITDA of 45 061€, the sector multiple of 1.4x 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.