M2E TERRITOIRES - M2ET : revenue, balance sheet and financial ratios

In 2024, M2E TERRITOIRES - M2ET achieves revenue of 6.8 M€. Over the period 2019-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +21.2%. Vs 2022: +9%. After deducting consumption (2.9 M€), gross margin stands at 3.9 M€, i.e. a rate of 57%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 221 k€, representing 3.3% of revenue. Warning negative scissor effect: despite revenue change (+9%), EBITDA varies by -69%, reducing margin by 8.0 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 67 k€, i.e. 1.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 103%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 3%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 441.60. 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 7.1x. 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: 118 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 77 days. The gap of 41 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 335 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 76 days of revenue, i.e. 1.4 M€ to permanently finance.

Indicative estimate only : the number of comparable transactions in this sector is limited (29 transactions). This range of 332 693€ to 1 048 197€ is provided for information purposes only and requires in-depth analysis to be confirmed.