EUROFLOAT : revenue, balance sheet and financial ratios

In 2024, EUROFLOAT achieves revenue of 128.9 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.8%. Significant drop of -20% vs 2023. After deducting consumption (55.6 M€), gross margin stands at 73.3 M€, i.e. a rate of 57%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 12.7 M€, representing 9.9% of revenue. Warning negative scissor effect: despite revenue change (-20%), EBITDA varies by -37%, reducing margin by 2.6 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 4.2 M€, i.e. 3.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 165%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. 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 4.3 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.4% 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 149.58. 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 19.8x. 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: 68 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 93 days. Favorable situation: supplier credit is longer than customer credit by 25 days. Inventory turnover is 49 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 120 days of revenue, i.e. 42.9 M€ to permanently finance. Over 2016-2024, WCR increased by +142%, requiring additional financing.

Based on 228 transactions of similar company sales (all years), the value of EUROFLOAT is estimated at 16 263 071 € (range 6 875 590€ - 43 684 792€). With an EBITDA of 12 716 205€, the sector multiple of 1.5x is applied. The price/revenue ratio is 0.13x (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.