M.SADIQ : revenue, balance sheet and financial ratios

In 2024, M.SADIQ achieves revenue of 4.1 M€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.2%. Significant drop of -18% vs 2023. After deducting consumption (3.3 M€), gross margin stands at 783 k€, i.e. a rate of 19%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 31 k€, representing 0.8% of revenue. Warning negative scissor effect: despite revenue change (-18%), EBITDA varies by -87%, reducing margin by 4.0 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 46 k€, i.e. 1.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 3%. 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 47%. 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 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 184.35. 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 0.9x. 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: 1 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 115 days. Excellent situation: suppliers finance 114 days of the operating cycle (retail model). Inventory turnover is 13 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 204 days of revenue, i.e. 2.3 M€ to permanently finance. Over 2015-2024, WCR increased by +849%, requiring additional financing.

Based on 551 transactions of similar company sales in 2024, the value of M.SADIQ is estimated at 409 023 € (range 203 147€ - 795 348€). With an EBITDA of 30 886€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.23x (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.