LANG ET ASSOCIES RHONE ALPES : revenue, balance sheet and financial ratios

In 2024, LANG ET ASSOCIES RHONE ALPES achieves revenue of 7.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +69.8%. After deducting consumption (0 €), gross margin stands at 7.7 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 744 k€, representing 9.7% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 549 k€, i.e. 7.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 46%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 49%. 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 3.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.3% 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 156.61. 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 7.5x. 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: 74 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 113 days. Excellent situation: suppliers finance 39 days of the operating cycle (retail model). Inventory turnover is 15 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 76 days of revenue, i.e. 1.6 M€ to permanently finance. Over 2016-2024, WCR increased by +5941%, requiring additional financing.

Based on 209 transactions of similar company sales (all years), the value of LANG ET ASSOCIES RHONE ALPES is estimated at 2 637 020 € (range 827 497€ - 7 299 835€). With an EBITDA of 744 071€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.87x (in line with sector norms). 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.