ISP SYSTEM : revenue, balance sheet and financial ratios

In 2024, ISP SYSTEM achieves revenue of 8.3 M€. Revenue is growing positively over 9 years (CAGR: +1.3%). Significant drop of -11% vs 2023. After deducting consumption (1.5 M€), gross margin stands at 6.8 M€, i.e. a rate of 81%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 267 k€, representing 3.2% of revenue. Warning negative scissor effect: despite revenue change (-11%), EBITDA varies by -83%, reducing margin by 14.0 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 507 k€, i.e. 6.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2%. 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 82%. 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 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.1% 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 581.60. 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 17.1x. 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: 97 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 43 days. The gap of 54 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 126 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 302 days of revenue, i.e. 7.0 M€ to permanently finance. Over 2016-2024, WCR increased by +65%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (40 transactions). This range of 417 629€ to 1 404 279€ is provided for information purposes only and requires in-depth analysis to be confirmed.