LINGUAPHONE FRANCE : revenue, balance sheet and financial ratios

In 2024, LINGUAPHONE FRANCE achieves revenue of 5.3 M€. Revenue is growing positively over 10 years (CAGR: +0.2%). Vs 2023, growth of +14% (4.6 M€ -> 5.3 M€). After deducting consumption (0 €), gross margin stands at 5.3 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 466 k€, representing 8.9% of revenue. Warning negative scissor effect: despite revenue change (+14%), EBITDA varies by -43%, reducing margin by 9.0 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 303 k€, i.e. 5.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 30%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 36%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.1% 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 187.57. 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 0.1x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 100 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. The gap of 46 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 45 days of revenue, i.e. 651 k€ to permanently finance. Over 2015-2024, WCR increased by +221%, requiring additional financing.

Based on 134 transactions of similar company sales (all years), the value of LINGUAPHONE FRANCE is estimated at 1 247 581 € (range 437 794€ - 3 380 802€). With an EBITDA of 466 499€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.36x (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.