PAUL MEDIA ESPACES : revenue, balance sheet and financial ratios

In 2019, PAUL MEDIA ESPACES achieves revenue of 438 k€. Over the period 2016-2019, the company shows strong growth with a CAGR (compound annual growth rate) of +44.7%. Vs 2018, growth of +17% (376 k€ -> 438 k€). After deducting consumption (80 k€), gross margin stands at 358 k€, i.e. a rate of 82%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 26 k€, representing 6.0% of revenue. Positive scissor effect: EBITDA margin improves by +8.1 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 16 k€, i.e. 3.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1289%. 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 3%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 5.1% 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 71.28. 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 13.6x. 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: 34 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 150 days. Excellent situation: suppliers finance 116 days of the operating cycle (retail model). Inventory turnover is 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 105 days of revenue, i.e. 127 k€ to permanently finance. Over 2016-2019, WCR increased by +249%, requiring additional financing.

Based on 63 transactions of similar company sales (all years), the value of PAUL MEDIA ESPACES is estimated at 115 621 € (range 47 443€ - 266 878€). With an EBITDA of 26 100€, the sector multiple of 1.6x is applied. The price/revenue ratio is 0.68x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.