PYRAMIDE : revenue, balance sheet and financial ratios

In 2023, PYRAMIDE achieves revenue of 8 k€. Revenue is declining over the period 2016-2023 (CAGR: -23.7%). Significant drop of -54% vs 2022. After deducting consumption (0 €), gross margin stands at 8 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 520 €, representing 6.6% of revenue. Warning negative scissor effect: despite revenue change (-54%), EBITDA varies by -94%, reducing margin by 41.8 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 94 k€, i.e. 1190.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 304%. 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 25%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 89.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 367.5% 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 7564.43. 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 7717.5x. 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: 1073 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 14 days. The gap of 1059 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 75087 days of revenue, i.e. 1.6 M€ to permanently finance. Over 2016-2023, WCR increased by +1956%, requiring additional financing.

Based on 66 transactions of similar company sales in 2023, the value of PYRAMIDE is estimated at 133 096 € (range 65 366€ - 341 011€). With an EBITDA of 520€, the sector multiple of 4.0x is applied. The price/revenue ratio is 0.63x (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.