H & C ABDON - ISIDORE : revenue, balance sheet and financial ratios

In 2024, H & C ABDON - ISIDORE achieves revenue of 324 k€. Over the period 2021-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +80.7%. Significant drop of -38% vs 2023. After deducting consumption (14 k€), gross margin stands at 310 k€, i.e. a rate of 96%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2 k€, representing 0.6% of revenue. Warning negative scissor effect: despite revenue change (-38%), EBITDA varies by -100%, reducing margin by 92.1 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 479 k€, i.e. 147.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 4%. 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 1%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Cash flow represents 149.0% 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 135.61. 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 553.9x. 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: 89 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 31 days. The gap of 58 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 746 days of revenue, i.e. 672 k€ to permanently finance. Over 2021-2024, WCR increased by +27373%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of H & C ABDON - ISIDORE is estimated at 953 154 € (range 331 377€ - 2 536 984€). With an EBITDA of 1 851€, 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.