INTERNATIONAL DEVELOPPEMENT MANAGEMENT : revenue, balance sheet and financial ratios

In 2024, INTERNATIONAL DEVELOPPEMENT MANAGEMENT achieves revenue of 2.2 M€. Revenue is growing positively over 9 years (CAGR: +1.9%). Vs 2023, growth of +30% (1.7 M€ -> 2.2 M€). After deducting consumption (0 €), gross margin stands at 2.2 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 1.7 M€, representing 75.5% of revenue. Positive scissor effect: EBITDA margin improves by +15.7 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 659 k€, i.e. 30.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 433%. 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 16%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 52.6% 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 114.57. 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 16.8x. 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: 82 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 6 days. The gap of 76 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. WCR is negative (-65 days): operations structurally generate cash. Notable WCR improvement over the period (-2363%), freeing up cash.

Based on 169 transactions of similar company sales in 2024, the value of INTERNATIONAL DEVELOPPEMENT MANAGEMENT is estimated at 6 063 420 € (range 1 699 643€ - 10 891 297€). With an EBITDA of 1 655 418€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.81x (in line with sector norms). 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.