EXECUTIVE RELOCATIONS : revenue, balance sheet and financial ratios

In 2024, EXECUTIVE RELOCATIONS achieves revenue of 7.7 M€. Activity remains stable over the period (CAGR: -2.0%). Vs 2023, growth of +19% (6.4 M€ -> 7.7 M€). After deducting consumption (0 €), gross margin stands at 7.7 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 82 k€, representing 1.1% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 637 k€, i.e. 8.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 190%. 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 28%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 9.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.4% 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 386.13. 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 194.4x. 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: 114 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 47 days. The gap of 67 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 112 days of revenue, i.e. 2.4 M€ to permanently finance. Notable WCR improvement over the period (-25%), freeing up cash.

Based on 69 transactions of similar company sales in 2024, the value of EXECUTIVE RELOCATIONS is estimated at 2 576 241 € (range 1 251 807€ - 4 168 757€). With an EBITDA of 82 268€, the sector multiple of 4.3x is applied. The price/revenue ratio is 0.66x (in line with sector norms). 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.