EDITIONS LA DECOUVERTE : revenue, balance sheet and financial ratios

In 2024, EDITIONS LA DECOUVERTE achieves revenue of 7.0 M€. Revenue is growing positively over 9 years (CAGR: +3.3%). Vs 2023, growth of +16% (6.0 M€ -> 7.0 M€). After deducting consumption (385 k€), gross margin stands at 6.6 M€, i.e. a rate of 95%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.4 M€, representing 33.7% of revenue. Positive scissor effect: EBITDA margin improves by +8.1 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 451 k€, i.e. 6.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 7%. 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 11%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 11.8% 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 153.94. 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 0.2x. 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: 164 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 179 days. Favorable situation: supplier credit is longer than customer credit by 15 days. Inventory turnover is 42 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 197 days of revenue, i.e. 3.8 M€ to permanently finance. Over 2016-2024, WCR increased by +80%, requiring additional financing.

Based on 104 transactions of similar company sales (all years), the value of EDITIONS LA DECOUVERTE is estimated at 2 264 508 € (range 1 046 787€ - 7 271 922€). With an EBITDA of 2 358 251€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.24x (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.