LYNE BAK : revenue, balance sheet and financial ratios

In 2024, LYNE BAK achieves revenue of 80 k€. Over the period 2022-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +51.6%. Significant drop of -28% vs 2023. After deducting consumption (49 k€), gross margin stands at 31 k€, i.e. a rate of 39%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 7 k€, representing 8.3% of revenue. Positive scissor effect: EBITDA margin improves by +23.2 pts, sign of improved operational efficiency. This ratio is more favorable than the sector median (3.0%). Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 645 €, i.e. 0.8% of revenue. This profit can be retained or distributed to shareholders.

Warning: the company shows negative equity (accumulated losses exceed its capital). This is a major financial weakness which makes debt and autonomy ratios non-meaningful. Financial autonomy (= Equity / Total assets x 100) reaches 34%. This ratio is more favorable than the sector median (29.3%). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 68.6 years of cash flow to repay all financial debt. Cash flow represents 1.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This ratio is slightly less favorable than the sector median (2.6%).

The liquidity ratio (= Current assets / Current liabilities) stands at 0.73. Alert: short-term debt exceeds current assets. Risk of payment difficulties without cash reinforcement. The interest coverage ratio (= EBIT / Interest expenses) is 23.3x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 1 days. Favorable situation: supplier credit is longer than customer credit by 1 days. Inventory turnover is 414 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. WCR is negative (-166 days): operations structurally generate cash. Between 2022 and 2024, WCR improved by 11 days of revenue, freeing up cash.

Based on 124 transactions of similar company sales (all years), the value of LYNE BAK is estimated at 12 592 € (range 5 569€ - 29 372€). With an EBITDA of 6 688€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.17x (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.