ETABLISSEMENTS ORAZIO : revenue, balance sheet and financial ratios

In 2024, ETABLISSEMENTS ORAZIO achieves revenue of 5.7 M€. Revenue is growing positively over 7 years (CAGR: +3.5%). Significant drop of -13% vs 2023. After deducting consumption (2.9 M€), gross margin stands at 2.8 M€, i.e. a rate of 49%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 197 k€, representing 3.4% of revenue. Warning negative scissor effect: despite revenue change (-13%), EBITDA varies by -52%, reducing margin by 2.7 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 104 k€, i.e. 1.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 8%. 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 61%. 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 2.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 268.03. 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: 50 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. Favorable situation: supplier credit is longer than customer credit by 4 days. Inventory turnover is 62 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 116 days of revenue, i.e. 1.8 M€ to permanently finance. Over 2016-2024, WCR increased by +37%, requiring additional financing.

Based on 88 transactions of similar company sales (all years), the value of ETABLISSEMENTS ORAZIO is estimated at 641 801 € (range 246 406€ - 1 132 826€). With an EBITDA of 197 276€, the sector multiple of 2.7x is applied. The price/revenue ratio is 0.18x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.