OUEST PRODUCTION : revenue, balance sheet and financial ratios

In 2024, OUEST PRODUCTION achieves revenue of 31.5 M€. Revenue is growing positively over 9 years (CAGR: +1.4%). Slight decline of -2% vs 2023. After deducting consumption (12.8 M€), gross margin stands at 18.6 M€, i.e. a rate of 59%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 3.4 M€, representing 11.0% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.1 M€, i.e. 3.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 12%. 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 77%. 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 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.4% 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 421.36. 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 0.6x. 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: 26 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 28 days. Favorable situation: supplier credit is longer than customer credit by 2 days. Inventory turnover is 38 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 57 days of revenue, i.e. 5.0 M€ to permanently finance. Notable WCR improvement over the period (-26%), freeing up cash.

Based on 242 transactions of similar company sales in 2024, the value of OUEST PRODUCTION is estimated at 18 246 834 € (range 9 939 997€ - 28 777 999€). With an EBITDA of 3 449 157€, the sector multiple of 6.6x is applied. The price/revenue ratio is 0.56x (in line with sector norms). 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.