ERYAD CONSULTING & EXPERTISE : revenue, balance sheet and financial ratios

In 2023, ERYAD CONSULTING & EXPERTISE achieves revenue of 395 k€. Revenue is declining over the period 2017-2023 (CAGR: -13.4%). Vs 2022, growth of +22% (324 k€ -> 395 k€). After deducting consumption (0 €), gross margin stands at 395 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 342 k€, representing 86.6% of revenue. Positive scissor effect: EBITDA margin improves by +22.4 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 265 k€, i.e. 67.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1%. 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 97%. 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 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 64.3% 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 1762.56. 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 8.4x. 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: 52 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 22 days. The company must finance 30 days of gap between collections and payments. Inventory turnover is 13 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 41 days of revenue, i.e. 45 k€ to permanently finance. Over 2017-2023, WCR increased by +159%, requiring additional financing.

Based on 66 transactions of similar company sales in 2023, the value of ERYAD CONSULTING & EXPERTISE is estimated at 1 119 077 € (range 339 473€ - 2 058 578€). With an EBITDA of 341 703€, the sector multiple of 4.0x is applied. The price/revenue ratio is 0.63x (in line with sector norms). 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.