MIDI ET DEMI SERVICES : revenue, balance sheet and financial ratios

In 2021, MIDI ET DEMI SERVICES achieves revenue of 27 k€. Revenue is declining over the period 2016-2021 (CAGR: -23.4%). Vs 2020, growth of +1295% (2 k€ -> 27 k€). After deducting consumption (3 k€), gross margin stands at 24 k€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 10 k€, representing 35.2% of revenue. Warning negative scissor effect: despite revenue change (+1295%), EBITDA varies by +418%, reducing margin by 59.5 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 16 k€, i.e. 59.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 60%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 36%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.5 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 66.3% 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 1111.64. 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 2.1x. 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: 120 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 31 days. The gap of 89 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 (-78 days): operations structurally generate cash. Notable WCR improvement over the period (-134%), freeing up cash.

Based on 163 transactions of similar company sales (all years), the value of MIDI ET DEMI SERVICES is estimated at 18 896 € (range 7 074€ - 47 904€). With an EBITDA of 9 545€, the sector multiple of 2.4x 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.