RIVIERA PLANE MAINTENANCE : revenue, balance sheet and financial ratios

In 2024, RIVIERA PLANE MAINTENANCE achieves revenue of 1.2 M€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.8%. Vs 2023: +8%. After deducting consumption (93 k€), gross margin stands at 1.1 M€, i.e. a rate of 92%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 180 k€, representing 14.9% of revenue. Warning negative scissor effect: despite revenue change (+8%), EBITDA varies by -6%, reducing margin by 2.4 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Net income is negative at -164 k€ (-13.6% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 758%. 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 10%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 15.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 7.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 102.35. 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 32.0x. 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: 14 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 36 days. Favorable situation: supplier credit is longer than customer credit by 22 days. Inventory turnover is 20 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 34 days of revenue, i.e. 114 k€ to permanently finance. Over 2015-2024, WCR increased by +38%, requiring additional financing.

Based on 197 transactions of similar company sales (all years), the value of RIVIERA PLANE MAINTENANCE is estimated at 401 288 € (range 151 531€ - 911 366€). With an EBITDA of 180 095€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.28x (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.