GEM INDUSTRY : revenue, balance sheet and financial ratios

In 2025, GEM INDUSTRY achieves revenue of 4.1 M€. Revenue is growing positively over 10 years (CAGR: +0.5%). Vs 2024, growth of +12% (3.6 M€ -> 4.1 M€). After deducting consumption (1.8 M€), gross margin stands at 2.2 M€, i.e. a rate of 55%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 25 k€, representing 0.6% of revenue. Positive scissor effect: EBITDA margin improves by +16.9 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 8 k€, i.e. 0.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 15%. 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 27%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 1.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 129.49. 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 64.4x. 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: 78 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 227 days. Excellent situation: suppliers finance 149 days of the operating cycle (retail model). Inventory turnover is 160 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 226 days of revenue, i.e. 2.6 M€ to permanently finance.

Indicative estimate only : the number of comparable transactions in this sector is limited (33 transactions). This range of 75 161€ to 607 932€ is provided for information purposes only and requires in-depth analysis to be confirmed.