GROUPE KAPITAL : revenue, balance sheet and financial ratios

In 2022, GROUPE KAPITAL achieves revenue of 1.4 M€. Over the period 2017-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +29.5%. Vs 2021, growth of +24% (1.1 M€ -> 1.4 M€). After deducting consumption (1.4 M€), gross margin stands at -26 k€, i.e. a rate of -2%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 158 k€, representing 11.7% of revenue. Positive scissor effect: EBITDA margin improves by +10.4 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Net income is negative at -99 k€ (-7.3% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 7303%. 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 1%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 37.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 10.0% 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 824.58. 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 51.4x. 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: 202 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 57 days. The gap of 145 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 377 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1390 days of revenue, i.e. 5.2 M€ to permanently finance. Over 2017-2022, WCR increased by +1067%, requiring additional financing.

Based on 107 transactions of similar company sales in 2022, the value of GROUPE KAPITAL is estimated at 789 398 € (range 443 379€ - 1 361 573€). With an EBITDA of 157 790€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.65x (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.