ETS RENNEVILLE : revenue, balance sheet and financial ratios

In 2023, ETS RENNEVILLE achieves revenue of 5.6 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +13.6%. Vs 2022, growth of +64% (3.5 M€ -> 5.6 M€). After deducting consumption (3.9 M€), gross margin stands at 1.7 M€, i.e. a rate of 31%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 624 k€, representing 11.1% of revenue. Positive scissor effect: EBITDA margin improves by +3.0 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 449 k€, i.e. 8.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 6%. 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 45%. 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 0.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 144.67. 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 0.8x. 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: 5 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 61 days. Excellent situation: suppliers finance 56 days of the operating cycle (retail model). Inventory turnover is 50 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 40 days of revenue, i.e. 627 k€ to permanently finance. Over 2016-2023, WCR increased by +43%, requiring additional financing.

Based on 137 transactions of similar company sales (all years), the value of ETS RENNEVILLE is estimated at 1 437 143 € (range 733 272€ - 3 157 432€). With an EBITDA of 624 295€, the sector multiple of 2.9x is applied. The price/revenue ratio is 0.17x (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.