PALIN-ESPACES VERTS : revenue, balance sheet and financial ratios

In 2024, PALIN-ESPACES VERTS achieves revenue of 3.6 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.3%. Vs 2023: +0%. After deducting consumption (884 k€), gross margin stands at 2.7 M€, i.e. a rate of 75%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 244 k€, representing 6.8% of revenue. Warning negative scissor effect: despite revenue change (+0%), EBITDA varies by -45%, reducing margin by 5.6 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 71 k€, i.e. 2.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 87%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 39%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.6 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.0% 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 196.44. 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 9.0x. 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: 31 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 41 days. Favorable situation: supplier credit is longer than customer credit by 10 days. Inventory turnover is 40 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 31 days of revenue, i.e. 305 k€ to permanently finance. Over 2016-2024, WCR increased by +44%, requiring additional financing.

Based on 125 transactions of similar company sales (all years), the value of PALIN-ESPACES VERTS is estimated at 764 106 € (range 318 384€ - 1 261 185€). With an EBITDA of 244 174€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.35x (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.