FLEXITECH EUROPE : revenue, balance sheet and financial ratios

In 2024, FLEXITECH EUROPE achieves revenue of 54.7 M€. Revenue is growing positively over 9 years (CAGR: +4.9%). Slight decline of -6% vs 2023. After deducting consumption (22.2 M€), gross margin stands at 32.5 M€, i.e. a rate of 59%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 5.0 M€, representing 9.1% of revenue. Warning negative scissor effect: despite revenue change (-6%), EBITDA varies by -31%, reducing margin by 3.3 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 365 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 61%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 204.71. 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: 67 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 64 days. The company must finance 3 days of gap between collections and payments. Inventory turnover is 50 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 147 days of revenue, i.e. 22.3 M€ to permanently finance. Over 2016-2024, WCR increased by +2391%, requiring additional financing.

Based on 80 transactions of similar company sales (all years), the value of FLEXITECH EUROPE is estimated at 6 645 226 € (range 2 895 321€ - 12 109 657€). With an EBITDA of 4 977 248€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.21x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.