METAL WORK FRANCE : revenue, balance sheet and financial ratios

In 2024, METAL WORK FRANCE achieves revenue of 6.3 M€. Revenue is growing positively over 9 years (CAGR: +2.5%). Slight decline of -3% vs 2023. After deducting consumption (3.9 M€), gross margin stands at 2.4 M€, i.e. a rate of 39%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 796 k€, representing 12.7% of revenue. Warning negative scissor effect: despite revenue change (-3%), EBITDA varies by -23%, reducing margin by 3.2 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 577 k€, i.e. 9.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 83%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Cash flow represents 9.7% 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 535.58. 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 0.0x. 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: 53 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 19 days. The gap of 34 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 54 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 84 days of revenue, i.e. 1.5 M€ to permanently finance.

Based on 103 transactions of similar company sales (all years), the value of METAL WORK FRANCE is estimated at 995 267 € (range 386 075€ - 2 744 992€). With an EBITDA of 796 105€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.25x (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.