PATRIARCA DEVELOPPEMENT : revenue, balance sheet and financial ratios

In 2024, PATRIARCA DEVELOPPEMENT achieves revenue of 4.2 M€. Over the period 2021-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +16.1%. Vs 2023, growth of +35% (3.1 M€ -> 4.2 M€). After deducting consumption (-14 €), gross margin stands at 4.2 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 577 k€, representing 13.7% of revenue. Positive scissor effect: EBITDA margin improves by +13.8 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 790 k€, i.e. 18.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 191%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. 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 53.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.7% 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 95.07. 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 389.0x. 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: 227 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 82 days. The gap of 145 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. WCR is negative (-21 days): operations structurally generate cash.

Based on 103 transactions of similar company sales in 2024, the value of PATRIARCA DEVELOPPEMENT is estimated at 3 430 366 € (range 992 574€ - 7 408 061€). With an EBITDA of 577 459€, the sector multiple of 5.0x 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.