LANGUEDOC ROUSSILLON MATERIAUX : revenue, balance sheet and financial ratios

In 2024, LANGUEDOC ROUSSILLON MATERIAUX achieves revenue of 17.5 M€. Revenue is growing positively over 9 years (CAGR: +1.8%). Significant drop of -14% vs 2023. After deducting consumption (2.6 M€), gross margin stands at 14.9 M€, i.e. a rate of 85%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 3.1 M€, representing 17.7% of revenue. Warning negative scissor effect: despite revenue change (-14%), EBITDA varies by -30%, reducing margin by 4.0 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.4 M€, i.e. 13.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 40%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 56%. 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 2.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 20.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 153.01. 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 11.5x. 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: 51 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 67 days. Favorable situation: supplier credit is longer than customer credit by 16 days. Inventory turnover is 89 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 105 days of revenue, i.e. 5.1 M€ to permanently finance. Over 2016-2024, WCR increased by +490%, requiring additional financing.

Based on 95 transactions of similar company sales (all years), the value of LANGUEDOC ROUSSILLON MATERIAUX is estimated at 3 652 026 € (range 1 166 360€ - 18 504 325€). With an EBITDA of 3 099 894€, the sector multiple of 1.4x 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.
Medium reliability: estimate to be confirmed with in-depth analysis.