LOZENGE ANALYTICS : revenue, balance sheet and financial ratios

In 2024, LOZENGE ANALYTICS achieves revenue of 667 k€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.7%. Vs 2023: +1%. After deducting consumption (-16 €), gross margin stands at 667 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 301 k€, representing 45.2% of revenue. Warning negative scissor effect: despite revenue change (+1%), EBITDA varies by -39%, reducing margin by 30.4 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 61 k€, i.e. 9.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 17%. 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 75%. 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 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 43.0% 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 629.25. 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 2.0x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 156 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 103 days. The gap of 53 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 196 days of revenue, i.e. 363 k€ to permanently finance.

Based on 120 transactions of similar company sales (all years), the value of LOZENGE ANALYTICS is estimated at 415 568 € (range 187 462€ - 1 126 879€). With an EBITDA of 301 351€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.27x (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.