PHYSIO-TECH : revenue, balance sheet and financial ratios

In 2024, PHYSIO-TECH achieves revenue of 2.2 M€. Activity remains stable over the period (CAGR: -3.3%). Slight decline of -0% vs 2023. After deducting consumption (705 k€), gross margin stands at 1.4 M€, i.e. a rate of 67%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 455 k€, representing 21.1% of revenue. Warning negative scissor effect: despite revenue change (-0%), EBITDA varies by -22%, reducing margin by 5.8 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 188 k€, i.e. 8.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1%. 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 73%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Cash flow represents 18.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 367.44. 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 0.1x. 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: 386 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 79 days. The gap of 307 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 85 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 439 days of revenue, i.e. 2.6 M€ to permanently finance. Over 2016-2024, WCR increased by +160%, requiring additional financing.

Based on 197 transactions of similar company sales (all years), the value of PHYSIO-TECH is estimated at 810 065 € (range 299 645€ - 1 903 630€). With an EBITDA of 454 823€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.28x (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.