EXPERIENCED CAPITAL MANAGEMENT : revenue, balance sheet and financial ratios

In 2024, EXPERIENCED CAPITAL MANAGEMENT achieves revenue of 5.7 M€. Revenue is declining over the period 2022-2024 (CAGR: -5.9%). Significant drop of -15% vs 2023. After deducting consumption (0 €), gross margin stands at 5.7 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 504 k€, representing 8.8% of revenue. Warning negative scissor effect: despite revenue change (-15%), EBITDA varies by -56%, reducing margin by 8.2 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 427 k€, i.e. 7.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 14%. 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 57%. 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 8.0% 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 273.30. 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 1.1x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 170 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 24 days. The gap of 146 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 122 days of revenue, i.e. 1.9 M€ to permanently finance. Notable WCR improvement over the period (-46%), freeing up cash.

Based on 69 transactions of similar company sales in 2024, the value of EXPERIENCED CAPITAL MANAGEMENT is estimated at 2 789 959 € (range 1 091 862€ - 4 442 986€). With an EBITDA of 503 650€, 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.