MERTZ LOCATION : revenue, balance sheet and financial ratios

In 2024, MERTZ LOCATION achieves revenue of 6.7 M€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +12.1%. Vs 2023, growth of +15% (5.8 M€ -> 6.7 M€). After deducting consumption (514 €), gross margin stands at 6.7 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 2.5 M€, representing 37.4% of revenue. Warning negative scissor effect: despite revenue change (+15%), EBITDA varies by -6%, reducing margin by 8.4 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 957 k€, i.e. 14.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 118%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 43%. 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 1.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 30.8% 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 482.99. 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 5.1x. 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: 107 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 4 days. The gap of 103 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. WCR is negative (-5 days): operations structurally generate cash. Notable WCR improvement over the period (-149%), freeing up cash.

Based on 292 transactions of similar company sales (all years), the value of MERTZ LOCATION is estimated at 17 500 614 € (range 3 838 960€ - 32 750 536€). With an EBITDA of 2 492 922€, the sector multiple of 9.5x is applied. The price/revenue ratio is 2.04x (premium 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.