QUADRATIC DIGITAL APPS : revenue, balance sheet and financial ratios

In 2024, QUADRATIC DIGITAL APPS achieves revenue of 2.1 M€. Over the period 2019-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.4%. Vs 2023: +5%. After deducting consumption (0 €), gross margin stands at 2.1 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 174 k€, representing 8.3% of revenue. Warning negative scissor effect: despite revenue change (+5%), EBITDA varies by -48%, reducing margin by 8.4 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 243 k€, i.e. 11.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 39%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 55%. 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 0.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 12.3% 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 261.67. 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 4.9x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 83 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 25 days. The gap of 58 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 144 days of revenue, i.e. 840 k€ to permanently finance. Over 2019-2024, WCR increased by +154%, requiring additional financing.

Based on 215 transactions of similar company sales (all years), the value of QUADRATIC DIGITAL APPS is estimated at 257 699 € (range 117 244€ - 770 872€). With an EBITDA of 174 178€, 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.