LES EDITIONS CREATIVES : revenue, balance sheet and financial ratios

In 2024, LES EDITIONS CREATIVES achieves revenue of 14.1 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.0%. Slight decline of -5% vs 2023. After deducting consumption (2.5 M€), gross margin stands at 11.6 M€, i.e. a rate of 82%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 528 k€, representing 3.8% of revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -313 k€ (-2.2% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at -543%. 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 -9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 64.27. 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 16.8x. 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: 2 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 43 days. Excellent situation: suppliers finance 41 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 8 days of revenue, i.e. 295 k€ to permanently finance. Over 2017-2024, WCR increased by +201%, requiring additional financing.

Based on 104 transactions of similar company sales (all years), the value of LES EDITIONS CREATIVES is estimated at 1 665 674 € (range 830 429€ - 3 972 209€). With an EBITDA of 527 886€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.24x (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.