EROSION ENVIRONMENTAL ENGINEERING GROUP SARL : revenue, balance sheet and financial ratios

In 2025, EROSION ENVIRONMENTAL ENGINEERING GROUP SARL achieves revenue of 250 k€. Revenue is growing positively over 9 years (CAGR: +4.4%). Vs 2024: +9%. After deducting consumption (0 €), gross margin stands at 250 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 20 k€, representing 7.8% of revenue. Positive scissor effect: EBITDA margin improves by +11.5 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 223 k€, i.e. 89.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 4%. 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 93%. 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 0.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 93.7% 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 1454.20. 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 173.4x. 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: 691 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 63 days. The gap of 628 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 755 days of revenue, i.e. 524 k€ to permanently finance. Notable WCR improvement over the period (-51%), freeing up cash.

Based on 131 transactions of similar company sales (all years), the value of EROSION ENVIRONMENTAL ENGINEERING GROUP SARL is estimated at 222 324 € (range 71 920€ - 568 341€). With an EBITDA of 19 558€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.36x (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.