PHAST : revenue, balance sheet and financial ratios

In 2024, PHAST achieves revenue of 4.0 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.7%. Vs 2022, growth of +22% (3.3 M€ -> 4.0 M€). After deducting consumption (0 €), gross margin stands at 4.0 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 348 k€, representing 8.7% of revenue. Positive scissor effect: EBITDA margin improves by +7.9 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 300 k€, i.e. 7.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 18%. 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 33%. The balance between equity and debt is satisfactory. 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 6.4% 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 285.00. 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 0.4x. 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: 186 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 40 days. The gap of 146 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 2 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 69 days of revenue, i.e. 770 k€ to permanently finance. Over 2016-2024, WCR increased by +431%, requiring additional financing.

Based on 215 transactions of similar company sales (all years), the value of PHAST is estimated at 451 583 € (range 206 037€ - 1 363 549€). With an EBITDA of 348 000€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.16x (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.