ELECTRONIQUE DU MAZET : revenue, balance sheet and financial ratios

In 2024, ELECTRONIQUE DU MAZET achieves revenue of 5.2 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +10.6%. Slight decline of -1% vs 2023. After deducting consumption (1.6 M€), gross margin stands at 3.6 M€, i.e. a rate of 69%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 622 k€, representing 12.0% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -17%, reducing margin by 2.2 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 482 k€, i.e. 9.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 44%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 58%. 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 2.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 13.0% 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 500.60. 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 48.6x. 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: 62 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 85 days. Favorable situation: supplier credit is longer than customer credit by 23 days. Inventory turnover is 171 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 220 days of revenue, i.e. 3.2 M€ to permanently finance. Over 2016-2024, WCR increased by +251%, requiring additional financing.

Based on 57 transactions of similar company sales (all years), the value of ELECTRONIQUE DU MAZET is estimated at 1 436 070 € (range 387 499€ - 2 777 588€). With an EBITDA of 621 652€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.23x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.