KAERTRADE : revenue, balance sheet and financial ratios

In 2022, KAERTRADE achieves revenue of 4.1 M€. Over the period 2016-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +25.2%. Vs 2021, growth of +29% (3.2 M€ -> 4.1 M€). After deducting consumption (3.0 M€), gross margin stands at 1.1 M€, i.e. a rate of 27%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 528 k€, representing 13.0% of revenue. Positive scissor effect: EBITDA margin improves by +4.6 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 378 k€, i.e. 9.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 47%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 31%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.9% 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 175.37. 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 2.0x. 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: 41 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 127 days. Excellent situation: suppliers finance 86 days of the operating cycle (retail model). Inventory turnover is 190 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 229 days of revenue, i.e. 2.6 M€ to permanently finance. Over 2016-2022, WCR increased by +746%, requiring additional financing.

Based on 145 transactions of similar company sales (all years), the value of KAERTRADE is estimated at 1 172 403 € (range 432 093€ - 2 977 343€). With an EBITDA of 527 537€, the sector multiple of 2.6x is applied. The price/revenue ratio is 0.19x (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.