MARTINEAU - DURAND : revenue, balance sheet and financial ratios

In 2024, MARTINEAU - DURAND achieves revenue of 1.8 M€. Revenue is growing positively over 9 years (CAGR: +2.2%). Slight decline of -7% vs 2023. After deducting consumption (1.2 M€), gross margin stands at 666 k€, i.e. a rate of 37%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 169 k€, representing 9.3% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 124 k€, i.e. 6.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 8%. 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 82%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 743.50. 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 0.4x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 9 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 18 days. Favorable situation: supplier credit is longer than customer credit by 9 days. Inventory turnover is 80 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 75 days of revenue, i.e. 381 k€ to permanently finance.

Based on 147 transactions of similar company sales in 2024, the value of MARTINEAU - DURAND is estimated at 768 159 € (range 343 020€ - 1 369 043€). With an EBITDA of 168 605€, the sector multiple of 5.5x is applied. The price/revenue ratio is 0.35x (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.