ESPACITE SA : revenue, balance sheet and financial ratios

In 2023, ESPACITE SA achieves revenue of 2.1 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +5.1%. Vs 2022, growth of +11% (1.9 M€ -> 2.1 M€). After deducting consumption (0 €), gross margin stands at 2.1 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 21 k€, representing 1.0% of revenue. Warning negative scissor effect: despite revenue change (+11%), EBITDA varies by -81%, reducing margin by 4.7 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 9 k€, i.e. 0.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 17%. 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 55%. 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 15.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 309.90. 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 15.4x. 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: 152 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 137 days. The company must finance 15 days of gap between collections and payments. Inventory turnover is 53 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 159 days of revenue, i.e. 927 k€ to permanently finance. Over 2016-2023, WCR increased by +37%, requiring additional financing.

Based on 131 transactions of similar company sales (all years), the value of ESPACITE SA is estimated at 280 731 € (range 128 941€ - 528 496€). With an EBITDA of 20 802€, 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.