MONDIAL RENT : revenue, balance sheet and financial ratios

In 2024, MONDIAL RENT achieves revenue of 785 k€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +38.3%. Vs 2023, growth of +88% (419 k€ -> 785 k€). After deducting consumption (312 k€), gross margin stands at 473 k€, i.e. a rate of 60%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 268 k€, representing 34.1% of revenue. Warning negative scissor effect: despite revenue change (+88%), EBITDA varies by +56%, reducing margin by 7.0 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 1 k€, i.e. 0.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2164%. 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 4%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.6 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 24.9% 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 658.43. 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 11.6x. 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: 30 days. The company must finance 8 days of gap between collections and payments. Inventory turnover is 122 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 172 days of revenue, i.e. 374 k€ to permanently finance. Over 2016-2024, WCR increased by +606%, requiring additional financing.

Based on 276 transactions of similar company sales (all years), the value of MONDIAL RENT is estimated at 2 150 884 € (range 453 405€ - 2 898 224€). With an EBITDA of 267 537€, the sector multiple of 11.9x is applied. The price/revenue ratio is 2.33x (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.