NOGARO AVIATION : revenue, balance sheet and financial ratios

In 2022, NOGARO AVIATION achieves revenue of 698 k€. Revenue is growing positively over 6 years (CAGR: +4.7%). Significant drop of -21% vs 2021. After deducting consumption (290 k€), gross margin stands at 408 k€, i.e. a rate of 58%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 8 k€, representing 1.1% of revenue. Warning negative scissor effect: despite revenue change (-21%), EBITDA varies by -89%, reducing margin by 7.3 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 15 k€, i.e. 2.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 42%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 34%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 21.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 187.27. 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 6.7x. 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: 34 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 12 days. The company must finance 22 days of gap between collections and payments. Inventory turnover is 113 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1 days of revenue, i.e. 2 k€ to permanently finance. Notable WCR improvement over the period (-97%), freeing up cash.

Based on 197 transactions of similar company sales (all years), the value of NOGARO AVIATION is estimated at 75 521 € (range 35 654€ - 146 890€). With an EBITDA of 7 976€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.28x (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.