IPSOS ELECTRIC : revenue, balance sheet and financial ratios

In 2024, IPSOS ELECTRIC achieves revenue of 1.5 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.3%. Significant drop of -20% vs 2023. After deducting consumption (399 k€), gross margin stands at 1.1 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 305 k€, representing 19.9% of revenue. Positive scissor effect: EBITDA margin improves by +3.2 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 205 k€, i.e. 13.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 24%. 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 57%. 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 1.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 15.9% 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 305.82. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 142 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 119 days. The company must finance 23 days of gap between collections and payments. Inventory turnover is 95 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 221 days of revenue, i.e. 941 k€ to permanently finance. Over 2017-2024, WCR increased by +215%, requiring additional financing.

Based on 197 transactions of similar company sales (all years), the value of IPSOS ELECTRIC is estimated at 582 342 € (range 218 009€ - 1 372 924€). With an EBITDA of 305 034€, 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.