HYDROFLUID TECHNOLOGIES : revenue, balance sheet and financial ratios

In 2024, HYDROFLUID TECHNOLOGIES achieves revenue of 8.2 M€. Revenue is growing positively over 8 years (CAGR: +2.6%). Vs 2023, growth of +13% (7.3 M€ -> 8.2 M€). After deducting consumption (2.1 M€), gross margin stands at 6.1 M€, i.e. a rate of 74%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 620 k€, representing 7.6% of revenue. Positive scissor effect: EBITDA margin improves by +6.2 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 453 k€, i.e. 5.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 21%. 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 58%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.6% 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 314.25. 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 1.2x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 86 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 72 days. The company must finance 14 days of gap between collections and payments. Inventory turnover is 51 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 131 days of revenue, i.e. 3.0 M€ to permanently finance. Over 2017-2024, WCR increased by +401%, requiring additional financing.

Based on 104 transactions of similar company sales (all years), the value of HYDROFLUID TECHNOLOGIES is estimated at 1 095 386 € (range 648 894€ - 3 137 168€). With an EBITDA of 620 124€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.27x (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.