EURL PROTEC SERVICES : revenue, balance sheet and financial ratios

In 2024, EURL PROTEC SERVICES achieves revenue of 443 k€. Activity remains stable over the period (CAGR: -0.2%). Significant drop of -17% vs 2023. After deducting consumption (0 €), gross margin stands at 443 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 49 k€, representing 11.1% of revenue. Warning negative scissor effect: despite revenue change (-17%), EBITDA varies by -31%, reducing margin by 2.3 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 40 k€, i.e. 9.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 91%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 24%. The balance between equity and debt is satisfactory. 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 8.5% 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 153.00. 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 13.6x. 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: 119 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 410 days. Excellent situation: suppliers finance 291 days of the operating cycle (retail model). Overall, WCR represents 130 days of revenue, i.e. 159 k€ to permanently finance. Over 2016-2024, WCR increased by +58%, requiring additional financing.

Based on 131 transactions of similar company sales (all years), the value of EURL PROTEC SERVICES is estimated at 192 950 € (range 67 344€ - 372 224€). With an EBITDA of 49 170€, 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.