RENISHAW : revenue, balance sheet and financial ratios

In 2025, RENISHAW achieves revenue of 12.9 M€. Revenue is growing positively over 10 years (CAGR: +1.2%). Significant drop of -16% vs 2024. After deducting consumption (7.2 M€), gross margin stands at 5.7 M€, i.e. a rate of 44%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 465 k€, representing 3.6% of revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -18 k€ (-0.1% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 89%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 34%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.9 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 211.34. 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 18.1x. 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: 70 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 32 days. The gap of 38 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 20 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 61 days of revenue, i.e. 2.2 M€ to permanently finance. Notable WCR improvement over the period (-36%), freeing up cash.

Indicative estimate only : the number of comparable transactions in this sector is limited (33 transactions). This range of 376 442€ to 2 865 013€ is provided for information purposes only and requires in-depth analysis to be confirmed.