INOVALIS : revenue, balance sheet and financial ratios

In 2024, INOVALIS achieves revenue of 10.6 M€. Activity remains stable over the period (CAGR: -3.3%). Slight decline of -9% vs 2023. After deducting consumption (0 €), gross margin stands at 10.6 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 108 k€, representing 1.0% of revenue. Positive scissor effect: EBITDA margin improves by +9.7 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 28.2 M€, i.e. 265.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 86%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 43%. 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 11.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 47.1% 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 108.02. 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 7254.3x. 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: 865 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 813 days. The gap of 52 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 374 days of revenue, i.e. 11.1 M€ to permanently finance. Notable WCR improvement over the period (-71%), freeing up cash.

Based on 277 transactions of similar company sales (all years), the value of INOVALIS is estimated at 13 572 274 € (range 3 293 419€ - 40 965 518€). With an EBITDA of 107 558€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.29x (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.