OUEST DEVELOPPEMENT : revenue, balance sheet and financial ratios

In 2024, OUEST DEVELOPPEMENT achieves revenue of 9.8 M€. Over the period 2018-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.8%. Slight decline of -1% vs 2023. After deducting consumption (2.0 M€), gross margin stands at 7.8 M€, i.e. a rate of 80%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.5 M€, representing 15.7% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -25%, reducing margin by 5.1 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 2.0 M€, i.e. 20.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 105%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 29%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 15.1% 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 167.28. 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 4.0x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 131 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 85 days. The gap of 46 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 181 days of revenue, i.e. 4.9 M€ to permanently finance. Over 2018-2024, WCR increased by +898%, requiring additional financing.

Based on 292 transactions of similar company sales (all years), the value of OUEST DEVELOPPEMENT is estimated at 16 675 367 € (range 3 215 603€ - 34 955 182€). With an EBITDA of 1 544 851€, the sector multiple of 9.5x is applied. The price/revenue ratio is 2.04x (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.