ESPACES VERTS SERVICES : revenue, balance sheet and financial ratios

In 2024, ESPACES VERTS SERVICES achieves revenue of 925 k€. Revenue is growing positively over 9 years (CAGR: +1.9%). Vs 2023: +0%. After deducting consumption (24 k€), gross margin stands at 901 k€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 108 k€, representing 11.7% of revenue. Warning negative scissor effect: despite revenue change (+0%), EBITDA varies by -21%, reducing margin by 3.1 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 79 k€, i.e. 8.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 32%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 49%. 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 2.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.1% 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 632.12. 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 0.3x. 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: 129 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 25 days. The gap of 104 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 21 days of revenue, i.e. 54 k€ to permanently finance. Notable WCR improvement over the period (-48%), freeing up cash.

Based on 125 transactions of similar company sales (all years), the value of ESPACES VERTS SERVICES is estimated at 298 046 € (range 113 790€ - 525 678€). With an EBITDA of 107 810€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.35x (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.