L.S.H : revenue, balance sheet and financial ratios

In 2024, L.S.H achieves revenue of 264 k€. Revenue is declining over the period 2016-2024 (CAGR: -5.6%). Significant drop of -56% vs 2023. After deducting consumption (16 k€), gross margin stands at 248 k€, i.e. a rate of 94%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -154 k€, representing -58.4% of revenue. Warning negative scissor effect: despite revenue change (-56%), EBITDA varies by -213%, reducing margin by 81.1 pts. This reflects costs rising faster than revenue. Negative EBITDA means operations do not cover current expenses: concerning situation. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.7 M€, i.e. 651.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 26%. 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 69%. 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 0.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 721.0% 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 280.44. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 1466 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 366 days. The gap of 1100 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 1463 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 3435 days of revenue, i.e. 2.5 M€ to permanently finance. Over 2016-2024, WCR increased by +3278%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of L.S.H is estimated at 6 608 175 € (range 2 276 983€ - 17 753 451€). The price/revenue ratio is 0.38x (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.