ENTREPRISE LYONNAISE D'ISOLATIONS THERMIQUES : revenue, balance sheet and financial ratios

In 2024, ENTREPRISE LYONNAISE D'ISOLATIONS THERMIQUES achieves revenue of 12.8 M€. Revenue is growing positively over 9 years (CAGR: +5.0%). Vs 2023: +5%. After deducting consumption (3.7 M€), gross margin stands at 9.1 M€, i.e. a rate of 71%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.5 M€, representing 19.7% of 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 1.6 M€, i.e. 12.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 5%. 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 74%. 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 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 14.5% 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 375.73. 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 0.2x. 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: 65 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 40 days. The company must finance 25 days of gap between collections and payments. Inventory turnover is 50 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 84 days of revenue, i.e. 3.0 M€ to permanently finance. Over 2016-2024, WCR increased by +51%, requiring additional financing.

Based on 228 transactions of similar company sales (all years), the value of ENTREPRISE LYONNAISE D'ISOLATIONS THERMIQUES is estimated at 3 011 926 € (range 1 099 615€ - 7 863 987€). With an EBITDA of 2 527 412€, the sector multiple of 1.5x is applied. The price/revenue ratio is 0.13x (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.