GESCOD PROVENCE : revenue, balance sheet and financial ratios

In 2024, GESCOD PROVENCE achieves revenue of 2.2 M€. Revenue is growing positively over 9 years (CAGR: +2.2%). Vs 2023: +1%. After deducting consumption (0 €), gross margin stands at 2.2 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 245 k€, representing 11.0% of revenue. Warning negative scissor effect: despite revenue change (+1%), EBITDA varies by -20%, reducing margin by 2.8 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 5.0 M€, i.e. 223.4% 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 81%. 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 1.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 185.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 1026.19. 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 10.7x. 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: 41 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 22 days. The company must finance 19 days of gap between collections and payments. Overall, WCR represents 1996 days of revenue, i.e. 12.3 M€ to permanently finance. Over 2016-2024, WCR increased by +230%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of GESCOD PROVENCE is estimated at 10 282 813 € (range 3 458 878€ - 26 880 546€). With an EBITDA of 244 547€, the sector multiple of 5.0x is applied. The price/revenue ratio is 0.38x (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.