E.D.L. ASSOCIES : revenue, balance sheet and financial ratios

In 2024, E.D.L. ASSOCIES achieves revenue of 37.5 M€. Revenue is growing positively over 9 years (CAGR: +4.0%). Vs 2023, growth of +16% (32.2 M€ -> 37.5 M€). After deducting consumption (30.4 M€), gross margin stands at 7.1 M€, i.e. a rate of 19%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4.6 M€, representing 12.1% of revenue. Warning negative scissor effect: despite revenue change (+16%), EBITDA varies by -6%, reducing margin by 2.9 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 4.2 M€, i.e. 11.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2%. 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 70%. This high autonomy means the company finances most of its assets through equity, a sign of strength. 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 15.3% 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 636.18. 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 35.8x. 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: 132 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 45 days. The gap of 87 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 71 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 337 days of revenue, i.e. 35.2 M€ to permanently finance. Over 2016-2024, WCR increased by +51%, requiring additional financing.

Based on 145 transactions of similar company sales (all years), the value of E.D.L. ASSOCIES is estimated at 10 883 440 € (range 3 934 776€ - 27 179 277€). With an EBITDA of 4 560 173€, the sector multiple of 2.6x is applied. The price/revenue ratio is 0.19x (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.