RENOVATION TRANSFORMATION HABITAT : revenue, balance sheet and financial ratios

In 2022, RENOVATION TRANSFORMATION HABITAT achieves revenue of 16 k€. Revenue is declining over the period 2016-2022 (CAGR: -6.0%). Significant drop of -84% vs 2021. After deducting consumption (2 k€), gross margin stands at 14 k€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 5 k€, representing 28.6% of revenue. Warning negative scissor effect: despite revenue change (-84%), EBITDA varies by -91%, reducing margin by 22.3 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 5 k€, i.e. 30.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 28%. 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 22%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 30.3% 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 641.58. 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 8.2x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 116 days. Excellent situation: suppliers finance 116 days of the operating cycle (retail model). Inventory turnover is 5418 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 4335 days of revenue, i.e. 191 k€ to permanently finance.

Based on 241 transactions of similar company sales in 2022, the value of RENOVATION TRANSFORMATION HABITAT is estimated at 14 500 € (range 5 951€ - 34 220€). With an EBITDA of 4 543€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.68x (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.