NIMAX CLASSICS : revenue, balance sheet and financial ratios

In 2021, NIMAX CLASSICS achieves revenue of 823 k€. Over the period 2019-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +19.9%. Vs 2020, growth of +42% (581 k€ -> 823 k€). After deducting consumption (617 k€), gross margin stands at 206 k€, i.e. a rate of 25%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 107 k€, representing 13.1% of revenue. Warning negative scissor effect: despite revenue change (+42%), EBITDA varies by +19%, reducing margin by 2.5 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 72 k€, i.e. 8.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 589%. 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 13%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 18.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 1030.12. 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 11.1x. 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: 14 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 3 days. The company must finance 11 days of gap between collections and payments. Inventory turnover is 631 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 580 days of revenue, i.e. 1.3 M€ to permanently finance. Over 2019-2021, WCR increased by +168%, requiring additional financing.

Based on 128 transactions of similar company sales in 2021, the value of NIMAX CLASSICS is estimated at 172 711 € (range 77 177€ - 590 576€). With an EBITDA of 107 389€, the sector multiple of 1.8x is applied. The price/revenue ratio is 0.16x (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.