RESORT CLUB MARKETING R.C.M. : revenue, balance sheet and financial ratios

In 2023, RESORT CLUB MARKETING R.C.M. achieves revenue of 3.9 M€. Revenue is growing positively over 8 years (CAGR: +2.8%). Vs 2022: +7%. After deducting consumption (848 k€), gross margin stands at 3.1 M€, i.e. a rate of 78%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 635 k€, representing 16.2% of revenue. Positive scissor effect: EBITDA margin improves by +9.8 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 13 k€, i.e. 0.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 835%. 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 5%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 12.2% 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 217.42. 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 27.4x. 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: 208 days. Excellent situation: suppliers finance 208 days of the operating cycle (retail model). Inventory turnover is 702 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 498 days of revenue, i.e. 5.4 M€ to permanently finance. Over 2016-2023, WCR increased by +598%, requiring additional financing.

Based on 108 transactions of similar company sales in 2023, the value of RESORT CLUB MARKETING R.C.M. is estimated at 2 052 205 € (range 788 223€ - 4 607 642€). With an EBITDA of 635 169€, the sector multiple of 3.7x is applied. The price/revenue ratio is 0.74x (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.