RW DEVELOPPEMENT INDUSTRIE : revenue, balance sheet and financial ratios

In 2024, RW DEVELOPPEMENT INDUSTRIE achieves revenue of 226 k€. Over the period 2022-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.3%. Vs 2023, growth of +12% (201 k€ -> 226 k€). After deducting consumption (0 €), gross margin stands at 226 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 141 k€, representing 62.3% of revenue. Warning negative scissor effect: despite revenue change (+12%), EBITDA varies by -22%, reducing margin by 26.7 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 124 k€, i.e. 55.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 67%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 59%. 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 2.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 55.1% 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 900.78. 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 8.8x. 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: 48 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 40 days. The company must finance 8 days of gap between collections and payments. Overall, WCR represents 59 days of revenue, i.e. 37 k€ to permanently finance. Over 2022-2024, WCR increased by +263%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of RW DEVELOPPEMENT INDUSTRIE is estimated at 615 837 € (range 154 297€ - 1 273 737€). With an EBITDA of 140 613€, the sector multiple of 5.0x is applied. The price/revenue ratio is 0.38x (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.