RHONE ALPES EQUIPEMENT : revenue, balance sheet and financial ratios

In 2023, RHONE ALPES EQUIPEMENT achieves revenue of 6.7 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +9.8%. Slight decline of -8% vs 2022. After deducting consumption (4.0 M€), gross margin stands at 2.7 M€, i.e. a rate of 41%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 333 k€, representing 5.0% of revenue. Warning negative scissor effect: despite revenue change (-8%), EBITDA varies by -44%, reducing margin by 3.3 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 240 k€, i.e. 3.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 20%. 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 44%. 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 1.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 181.25. 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 4.4x. 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: 58 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 75 days. Favorable situation: supplier credit is longer than customer credit by 17 days. Inventory turnover is 84 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 126 days of revenue, i.e. 2.3 M€ to permanently finance. Over 2016-2023, WCR increased by +148%, requiring additional financing.

Based on 147 transactions of similar company sales (all years), the value of RHONE ALPES EQUIPEMENT is estimated at 589 945 € (range 328 010€ - 1 269 489€). With an EBITDA of 332 864€, the sector multiple of 2.0x is applied. The price/revenue ratio is 0.08x (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.