INNOVATIVE TECHNOLOGIES : revenue, balance sheet and financial ratios

In 2025, INNOVATIVE TECHNOLOGIES achieves revenue of 1.0 M€. Over the period 2019-2025, the company shows strong growth with a CAGR (compound annual growth rate) of +12.4%. Significant drop of -16% vs 2024. After deducting consumption (244 k€), gross margin stands at 765 k€, i.e. a rate of 76%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 359 k€, representing 35.6% of revenue. Warning negative scissor effect: despite revenue change (-16%), EBITDA varies by -22%, reducing margin by 2.7 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 155 k€, i.e. 15.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 5%. 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 66%. 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 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 43.1% 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 264.78. 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 0.5x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 358 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 275 days. The gap of 83 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 131 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 539 days of revenue, i.e. 1.5 M€ to permanently finance. Over 2019-2025, WCR increased by +143%, requiring additional financing.

Based on 98 transactions of similar company sales (all years), the value of INNOVATIVE TECHNOLOGIES is estimated at 882 521 € (range 221 423€ - 1 459 023€). With an EBITDA of 359 017€, the sector multiple of 3.5x is applied. The price/revenue ratio is 0.36x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.