GLOBAL RISK ASSURANCES : revenue, balance sheet and financial ratios

In 2024, GLOBAL RISK ASSURANCES achieves revenue of 1.5 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +12.6%. Vs 2023: +3%. After deducting consumption (0 €), gross margin stands at 1.5 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 346 k€, representing 22.3% of revenue. Warning negative scissor effect: despite revenue change (+3%), EBITDA varies by -9%, reducing margin by 2.8 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 188 k€, i.e. 12.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 593%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 11%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 13.3% 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 53.40. 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 1.8x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 99 days. Excellent situation: suppliers finance 99 days of the operating cycle (retail model). Overall, WCR represents 21 days of revenue, i.e. 90 k€ to permanently finance. Notable WCR improvement over the period (-69%), freeing up cash.

Based on 193 transactions of similar company sales (all years), the value of GLOBAL RISK ASSURANCES is estimated at 741 685 € (range 217 205€ - 2 263 282€). With an EBITDA of 345 850€, the sector multiple of 1.2x is applied. The price/revenue ratio is 0.98x (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.