ENTREPRISE GENERALE CONSTRUCTION BATIMEN : revenue, balance sheet and financial ratios

In 2024, ENTREPRISE GENERALE CONSTRUCTION BATIMEN achieves revenue of 2.8 M€. Revenue is growing positively over 8 years (CAGR: +3.3%). Slight decline of -6% vs 2023. After deducting consumption (568 k€), gross margin stands at 2.3 M€, i.e. a rate of 80%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 249 k€, representing 8.8% of revenue. Warning negative scissor effect: despite revenue change (-6%), EBITDA varies by -35%, reducing margin by 4.0 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 95 k€, i.e. 3.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 39%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 62%. 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 2.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 486.81. 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 1.3x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 25 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 57 days. Excellent situation: suppliers finance 32 days of the operating cycle (retail model). Inventory turnover is 14 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 43 days of revenue, i.e. 335 k€ to permanently finance. Over 2016-2024, WCR increased by +135%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of ENTREPRISE GENERALE CONSTRUCTION BATIMEN is estimated at 595 221 € (range 252 245€ - 1 146 304€). With an EBITDA of 249 428€, 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.