PATCO : revenue, balance sheet and financial ratios

In 2024, PATCO achieves revenue of 2.1 M€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.8%. Slight decline of -4% vs 2023. After deducting consumption (1.5 M€), gross margin stands at 555 k€, i.e. a rate of 27%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 100 k€, representing 4.8% of revenue. Warning negative scissor effect: despite revenue change (-4%), EBITDA varies by -48%, reducing margin by 4.1 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 72 k€, 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 100%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 44%. 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 16.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 178.04. 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 4.1x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. Excellent situation: suppliers finance 54 days of the operating cycle (retail model). Inventory turnover is 56 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 52 days of revenue, i.e. 300 k€ to permanently finance. Over 2015-2024, WCR increased by +41%, requiring additional financing.

Based on 173 transactions of similar company sales (all years), the value of PATCO is estimated at 459 330 € (range 164 109€ - 1 004 782€). With an EBITDA of 99 641€, the sector multiple of 3.4x is applied. The price/revenue ratio is 0.38x (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.