LARZABAL SAS (ETS) : revenue, balance sheet and financial ratios

In 2024, LARZABAL SAS (ETS) achieves revenue of 1.8 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.3%. Slight decline of -2% vs 2023. After deducting consumption (0 €), gross margin stands at 1.8 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 399 k€, representing 22.3% of revenue. Warning negative scissor effect: despite revenue change (-2%), EBITDA varies by -30%, reducing margin by 8.8 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 1.5 M€, i.e. 83.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 14%. 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 85%. 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 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 81.6% 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 192.29. 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 22.8x. 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: 39 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 67 days. Favorable situation: supplier credit is longer than customer credit by 28 days. Overall, WCR represents 316 days of revenue, i.e. 1.6 M€ to permanently finance. Over 2016-2024, WCR increased by +21%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of LARZABAL SAS (ETS) is estimated at 4 062 426 € (range 1 250 062€ - 9 759 797€). With an EBITDA of 399 049€, the sector multiple of 5.0x is applied. The price/revenue ratio is 0.38x (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.