ENTREPRISE DONNINI : revenue, balance sheet and financial ratios

In 2024, ENTREPRISE DONNINI achieves revenue of 11.3 M€. Revenue is growing positively over 9 years (CAGR: +1.2%). Significant drop of -10% vs 2023. After deducting consumption (2.8 M€), gross margin stands at 8.5 M€, i.e. a rate of 75%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.1 M€, representing 9.6% of revenue. Warning negative scissor effect: despite revenue change (-10%), EBITDA varies by -26%, reducing margin by 2.0 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 283 k€, i.e. 2.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 12%. 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 36%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.1 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 0.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 175.93. 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 0.5x. 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: 95 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 83 days. The company must finance 12 days of gap between collections and payments. Inventory turnover is 3 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 95 days of revenue, i.e. 3.0 M€ to permanently finance. Over 2016-2024, WCR increased by +130%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of ENTREPRISE DONNINI is estimated at 2 501 995 € (range 1 056 677€ - 4 666 507€). With an EBITDA of 1 089 924€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.11x (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.