GREENLOG : revenue, balance sheet and financial ratios

In 2023, GREENLOG achieves revenue of 19.5 M€. Over the period 2015-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +10.1%. Slight decline of -1% vs 2022. After deducting consumption (615 k€), gross margin stands at 18.9 M€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.4 M€, representing 12.5% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -48%, reducing margin by 11.4 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 1.4 M€, i.e. 7.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 100%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 32%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.5 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 9.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 255.97. 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 0.0x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 249 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 82 days. The gap of 167 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 6 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 282 days of revenue, i.e. 15.3 M€ to permanently finance. Over 2015-2023, WCR increased by +1104%, requiring additional financing.

Based on 167 transactions of similar company sales (all years), the value of GREENLOG is estimated at 1 882 498 € (range 1 020 188€ - 3 217 345€). With an EBITDA of 2 436 747€, the sector multiple of 0.9x is applied. The price/revenue ratio is 0.11x (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.