INVEST HOTEL LYON DECINES-CHARPIEU : revenue, balance sheet and financial ratios

In 2024, INVEST HOTEL LYON DECINES-CHARPIEU achieves revenue of 849 k€. Revenue is growing positively over 9 years (CAGR: +1.0%). Significant drop of -18% vs 2023. After deducting consumption (32 k€), gross margin stands at 817 k€, i.e. a rate of 96%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 130 k€, representing 15.3% of revenue. Warning negative scissor effect: despite revenue change (-18%), EBITDA varies by -49%, reducing margin by 9.3 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 21 k€, i.e. 2.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 127%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 26%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.1% 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 75.70. 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 1.0x. 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: 1 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 92 days. Excellent situation: suppliers finance 91 days of the operating cycle (retail model). Inventory turnover is 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 9 days of revenue, i.e. 20 k€ to permanently finance. Over 2016-2024, WCR increased by +159%, requiring additional financing.

Based on 99 transactions of similar company sales in 2024, the value of INVEST HOTEL LYON DECINES-CHARPIEU is estimated at 465 509 € (range 150 289€ - 888 935€). With an EBITDA of 129 733€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.54x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.