L.G. DEVELOPPEMENT : revenue, balance sheet and financial ratios

In 2024, L.G. DEVELOPPEMENT achieves revenue of 751 k€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +14.2%. Slight decline of -3% vs 2023. After deducting consumption (0 €), gross margin stands at 751 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 11 k€, representing 1.5% of revenue. Warning negative scissor effect: despite revenue change (-3%), EBITDA varies by -80%, reducing margin by 5.6 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 316 k€, i.e. 42.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 36%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 70%. 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 2.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 55.8% 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 209.58. 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 166.3x. 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: 113 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 16 days. The gap of 97 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 118 days of revenue, i.e. 246 k€ to permanently finance. Over 2017-2024, WCR increased by +157%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of L.G. DEVELOPPEMENT is estimated at 201 856 € (range 78 038€ - 630 991€). With an EBITDA of 11 070€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.11x (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.