HORIZONTAL DRILLING INTERNATIONAL : revenue, balance sheet and financial ratios

In 2024, HORIZONTAL DRILLING INTERNATIONAL achieves revenue of 29.7 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.6%. Vs 2022, growth of +79% (16.6 M€ -> 29.7 M€). After deducting consumption (-126 k€), gross margin stands at 29.8 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 907 k€, representing 3.1% of revenue. Warning negative scissor effect: despite revenue change (+79%), EBITDA varies by -68%, reducing margin by 14.2 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 1.2 M€, i.e. 4.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 3%. 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 14%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.7% 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 121.25. 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 8.8x. 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: 136 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 133 days. The company must finance 3 days of gap between collections and payments. Inventory turnover is 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 134 days of revenue, i.e. 11.1 M€ to permanently finance. Over 2017-2024, WCR increased by +29%, requiring additional financing.

Based on 136 transactions of similar company sales (all years), the value of HORIZONTAL DRILLING INTERNATIONAL is estimated at 3 393 280 € (range 1 395 674€ - 7 945 215€). With an EBITDA of 907 139€, the sector multiple of 1.7x is applied. The price/revenue ratio is 0.21x (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.