MEZIANI DEVELOPPEMENT : revenue, balance sheet and financial ratios

In 2024, MEZIANI DEVELOPPEMENT achieves revenue of 216 k€. Activity remains stable over the period (CAGR: 0.0%). Vs 2023: +4%. After deducting consumption (0 €), gross margin stands at 216 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 145 k€, representing 67.3% of revenue. Positive scissor effect: EBITDA margin improves by +110.7 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 129 k€, i.e. 59.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 71%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 57%. 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 5.9 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 59.9% 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 4964.74. 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 23.3x. 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: 90 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 27 days. The gap of 63 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 2427 days of revenue, i.e. 1.5 M€ to permanently finance. Over 2020-2024, WCR increased by +174%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of MEZIANI DEVELOPPEMENT is estimated at 636 326 € (range 159 094€ - 1 316 966€). With an EBITDA of 145 468€, the sector multiple of 5.0x is applied. The price/revenue ratio is 0.38x (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.