GLOBAL RETAIL CONSULTING GROUP : revenue, balance sheet and financial ratios

In 2018, GLOBAL RETAIL CONSULTING GROUP achieves revenue of 671 k€. Over the period 2016-2018, the company shows strong growth with a CAGR (compound annual growth rate) of +18.8%. Vs 2017: +8%. After deducting consumption (0 €), gross margin stands at 671 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 187 k€, representing 27.9% of revenue. Warning negative scissor effect: despite revenue change (+8%), EBITDA varies by -33%, reducing margin by 16.7 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 120 k€, i.e. 17.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 21%. 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 63%. 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 0.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 19.7% 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 339.44. 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 2.9x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 23 days. Favorable situation: supplier credit is longer than customer credit by 23 days. WCR is negative (-69 days): operations structurally generate cash. Notable WCR improvement over the period (-198%), freeing up cash.

Based on 63 transactions of similar company sales (all years), the value of GLOBAL RETAIL CONSULTING GROUP is estimated at 325 618 € (range 148 565€ - 979 257€). With an EBITDA of 187 028€, the sector multiple of 1.6x is applied. The price/revenue ratio is 0.68x (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.