HOTEL ROYAL MAGENTA : revenue, balance sheet and financial ratios

In 2025, HOTEL ROYAL MAGENTA achieves revenue of 3.5 M€. Revenue is growing positively over 6 years (CAGR: +5.0%). Slight decline of -1% vs 2024. After deducting consumption (306 k€), gross margin stands at 3.2 M€, i.e. a rate of 91%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 905 k€, representing 26.1% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -10%, 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 625 k€, i.e. 18.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 216%. 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 24%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 20.4% 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 265.16. 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 7.5x. 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: 20 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 71 days. Excellent situation: suppliers finance 51 days of the operating cycle (retail model). Inventory turnover is 3 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 101 days of revenue, i.e. 969 k€ to permanently finance. Over 2017-2025, WCR increased by +72%, requiring additional financing.

Based on 114 transactions of similar company sales in 2025, the value of HOTEL ROYAL MAGENTA is estimated at 3 354 092 € (range 1 180 017€ - 6 657 307€). With an EBITDA of 904 786€, the sector multiple of 4.9x is applied. The price/revenue ratio is 0.43x (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.