MINI-MWA : revenue, balance sheet and financial ratios

In 2024, MINI-MWA achieves revenue of 1.5 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +13.3%. Vs 2023, growth of +15% (1.3 M€ -> 1.5 M€). After deducting consumption (181 k€), gross margin stands at 1.3 M€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 500 k€, representing 34.3% of revenue. Warning negative scissor effect: despite revenue change (+15%), EBITDA varies by +0%, reducing margin by 5.2 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 135 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 238%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 27%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 10.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 27.7% 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 301.44. 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 15.6x. 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: 38 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 21 days. The company must finance 17 days of gap between collections and payments. Inventory turnover is 235 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 267 days of revenue, i.e. 1.1 M€ to permanently finance. Over 2017-2024, WCR increased by +335%, requiring additional financing.

Based on 169 transactions of similar company sales in 2024, the value of MINI-MWA is estimated at 1 938 730 € (range 561 283€ - 3 494 027€). With an EBITDA of 500 486€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.81x (in line with sector norms). 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.