MAGELLAN PARTNERS : revenue, balance sheet and financial ratios

In 2024, MAGELLAN PARTNERS achieves revenue of 17.1 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +81.5%. Vs 2023, growth of +24% (13.8 M€ -> 17.1 M€). After deducting consumption (0 €), gross margin stands at 17.1 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.3 M€, representing 13.2% of revenue. Positive scissor effect: EBITDA margin improves by +5.5 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 7.3 M€, i.e. 42.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 413%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 19%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 42.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 51.3% 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 529.38. 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 1395.6x. 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: 181 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 188 days. Favorable situation: supplier credit is longer than customer credit by 7 days. Inventory turnover is 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 878 days of revenue, i.e. 41.8 M€ to permanently finance. Over 2016-2024, WCR increased by +3495%, requiring additional financing.

Based on 215 transactions of similar company sales (all years), the value of MAGELLAN PARTNERS is estimated at 4 084 694 € (range 1 791 123€ - 12 710 565€). With an EBITDA of 2 254 830€, the sector multiple of 1.0x 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.