LOIRE TOITURE BARDAGE - L.T.B : revenue, balance sheet and financial ratios

In 2023, LOIRE TOITURE BARDAGE - L.T.B achieves revenue of 1.8 M€. Revenue is growing positively over 8 years (CAGR: +2.9%). Vs 2022, growth of +21% (1.5 M€ -> 1.8 M€). After deducting consumption (996 k€), gross margin stands at 814 k€, i.e. a rate of 45%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 171 k€, representing 9.5% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 100 k€, i.e. 5.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 22%. 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 44%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.9% 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 204.01. 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 0.5x. 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: 59 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 73 days. Favorable situation: supplier credit is longer than customer credit by 14 days. Inventory turnover is 15 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 77 days of revenue, i.e. 387 k€ to permanently finance. Over 2016-2023, WCR increased by +35%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of LOIRE TOITURE BARDAGE - L.T.B is estimated at 330 450 € (range 161 487€ - 542 197€). With an EBITDA of 171 090€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.16x (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.