INSTRON FRANCE S.A.S. : revenue, balance sheet and financial ratios

In 2024, INSTRON FRANCE S.A.S. achieves revenue of 20.3 M€. Revenue is growing positively over 9 years (CAGR: +2.1%). Significant drop of -16% vs 2023. After deducting consumption (5.2 M€), gross margin stands at 15.1 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 4.0 M€, representing 19.5% of revenue. Warning negative scissor effect: despite revenue change (-16%), EBITDA varies by -44%, reducing margin by 9.5 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 2.2 M€, i.e. 11.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 17%. 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 41%. 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 0.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.4% 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 256.92. 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 0.4x. 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: 60 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 38 days. The company must finance 22 days of gap between collections and payments. Inventory turnover is 16 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 107 days of revenue, i.e. 6.0 M€ to permanently finance. Over 2016-2024, WCR increased by +67%, requiring additional financing.

Based on 197 transactions of similar company sales (all years), the value of INSTRON FRANCE S.A.S. is estimated at 7 439 575 € (range 2 781 720€ - 17 473 597€). With an EBITDA of 3 967 736€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.28x (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.