JOYAL TEXTILES : revenue, balance sheet and financial ratios

In 2023, JOYAL TEXTILES achieves revenue of 10.1 M€. Over the period 2017-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +54.6%. Vs 2022, growth of +55% (6.5 M€ -> 10.1 M€). After deducting consumption (6.8 M€), gross margin stands at 3.3 M€, i.e. a rate of 33%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 524 k€, representing 5.2% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 314 k€, i.e. 3.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 61%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 15%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 2.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 129.50. 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 11.2x. 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: 30 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 150 days. Excellent situation: suppliers finance 120 days of the operating cycle (retail model). Inventory turnover is 144 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 184 days of revenue, i.e. 5.1 M€ to permanently finance. Over 2017-2023, WCR increased by +2918%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of JOYAL TEXTILES is estimated at 1 304 336 € (range 569 754€ - 3 082 470€). With an EBITDA of 524 400€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.17x (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.