PRATT AND WHITNEY : revenue, balance sheet and financial ratios

In 2024, PRATT AND WHITNEY achieves revenue of 17.8 M€. Revenue is declining over the period 2016-2024 (CAGR: -35.4%). Slight decline of -0% vs 2023. After deducting consumption (39 k€), gross margin stands at 17.8 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 1.4 M€, representing 7.8% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 5.3 M€, i.e. 30.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 10%. 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 80%. 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 1.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 30.6% 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 827.70. 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 29.3x. 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: 50 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 109 days. Excellent situation: suppliers finance 59 days of the operating cycle (retail model). Overall, WCR represents 1267 days of revenue, i.e. 62.7 M€ to permanently finance. Notable WCR improvement over the period (-38%), freeing up cash.

Based on 197 transactions of similar company sales (all years), the value of PRATT AND WHITNEY is estimated at 5 362 764 € (range 2 209 404€ - 12 581 717€). With an EBITDA of 1 391 199€, 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.