J.I.P. DECOR : revenue, balance sheet and financial ratios

In 2024, J.I.P. DECOR achieves revenue of 1.5 M€. Activity remains stable over the period (CAGR: -2.5%). Slight decline of -9% vs 2023. After deducting consumption (307 k€), gross margin stands at 1.2 M€, i.e. a rate of 79%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 127 k€, representing 8.6% of revenue. Warning negative scissor effect: despite revenue change (-9%), EBITDA varies by -45%, reducing margin by 5.6 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 86 k€, i.e. 5.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 10%. 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 40%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.9% 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 378.18. 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 0.8x. 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: 91 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 50 days. The gap of 41 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 67 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 24 days of revenue, i.e. 99 k€ to permanently finance. Notable WCR improvement over the period (-74%), freeing up cash.

Indicative estimate only : the number of comparable transactions in this sector is limited (40 transactions). This range of 145 070€ to 891 298€ is provided for information purposes only and requires in-depth analysis to be confirmed.