ENTRECOTE GESTION TAJPA : revenue, balance sheet and financial ratios

In 2023, ENTRECOTE GESTION TAJPA achieves revenue of 2.5 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +8.2%. Vs 2022, growth of +19% (2.1 M€ -> 2.5 M€). After deducting consumption (257 k€), gross margin stands at 2.2 M€, i.e. a rate of 90%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 873 k€, representing 35.2% of revenue. Warning negative scissor effect: despite revenue change (+19%), EBITDA varies by +9%, reducing margin by 3.3 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.3 M€, i.e. 53.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 26%. 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 76%. 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 2.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 81.4% 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 884.21. 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 125.2x. 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: 137 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 26 days. The gap of 111 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 9 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 11 days of revenue, i.e. 73 k€ to permanently finance. Over 2016-2023, WCR increased by +106%, requiring additional financing.

Based on 63 transactions of similar company sales in 2023, the value of ENTRECOTE GESTION TAJPA is estimated at 4 635 730 € (range 1 310 717€ - 7 579 572€). With an EBITDA of 873 191€, the sector multiple of 4.6x 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.
Medium reliability: estimate to be confirmed with in-depth analysis.