LED DESIGN CONCEPT BY AEEPI : revenue, balance sheet and financial ratios

In 2021, LED DESIGN CONCEPT BY AEEPI achieves revenue of 151 k€. Revenue is growing positively over 6 years (CAGR: +1.6%). Vs 2020: +1%. After deducting consumption (97 k€), gross margin stands at 54 k€, i.e. a rate of 36%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 12 k€, representing 7.8% of revenue. Warning negative scissor effect: despite revenue change (+1%), EBITDA varies by -40%, reducing margin by 5.2 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 391 €, i.e. 0.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 228%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 54%. 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 4.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.8% 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 283.61. 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 7.7x. 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: 18 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 27 days. Favorable situation: supplier credit is longer than customer credit by 9 days. Inventory turnover is 51 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 45 days of revenue, i.e. 19 k€ to permanently finance. Over 2016-2021, WCR increased by +51%, requiring additional financing.

Based on 185 transactions of similar company sales (all years), the value of LED DESIGN CONCEPT BY AEEPI is estimated at 32 431 € (range 12 921€ - 75 126€). With an EBITDA of 11 743€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.28x (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.