MEDIAPOWER SERVICES : revenue, balance sheet and financial ratios

In 2024, MEDIAPOWER SERVICES achieves revenue of 291 k€. Revenue is declining over the period 2016-2024 (CAGR: -15.7%). Significant drop of -35% vs 2023. After deducting consumption (7 k€), gross margin stands at 284 k€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 17 k€, representing 5.9% of revenue. Positive scissor effect: EBITDA margin improves by +9.1 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 27 k€, i.e. 9.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 22%. 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 28%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.6% 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 148.73. 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 3.5x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 29 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 32 days. Favorable situation: supplier credit is longer than customer credit by 3 days. Inventory turnover is 80 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 4 days of revenue, i.e. 3 k€ to permanently finance. Notable WCR improvement over the period (-54%), freeing up cash.

Based on 131 transactions of similar company sales (all years), the value of MEDIAPOWER SERVICES is estimated at 90 359 € (range 33 314€ - 182 646€). With an EBITDA of 17 040€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.36x (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.