E.M.&PARTNERS : revenue, balance sheet and financial ratios

In 2024, E.M.&PARTNERS achieves revenue of 358 k€. Activity remains stable over the period (CAGR: -4.6%). Significant drop of -19% vs 2023. After deducting consumption (213 k€), gross margin stands at 144 k€, i.e. a rate of 40%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 10 k€, representing 2.8% of revenue. Positive scissor effect: EBITDA margin improves by +5.2 pts, sign of improved operational efficiency. This ratio is slightly less favorable than the sector median (3.0%). Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 3 k€, i.e. 0.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 408%. This ratio is less favorable than the sector median (10.8%) and warrants attention. Financial autonomy (= Equity / Total assets x 100) reaches 16%. This ratio is slightly less favorable than the sector median (29.3%). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 66.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This ratio is slightly less favorable than the sector median (2.6%).

The liquidity ratio (= Current assets / Current liabilities) stands at 4.93. Compared with its sector, this ratio places the company among the best positioned (sector median: 1.9). The interest coverage ratio (= EBIT / Interest expenses) is 87.8x. 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: 6 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 64 days. Excellent situation: suppliers finance 58 days of the operating cycle (retail model). Inventory turnover is 327 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 322 days of revenue, i.e. 320 k€ to permanently finance. Between 2021 and 2024, WCR worsened by 154 days of revenue, signaling an increased financing need.

Based on 124 transactions of similar company sales (all years), the value of E.M.&PARTNERS is estimated at 32 068 € (range 14 914€ - 81 078€). With an EBITDA of 9 929€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.17x (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.