SARL LE PASSAGE 2000 : revenue, balance sheet and financial ratios

In 2016, SARL LE PASSAGE 2000 achieves revenue of 150 k€. Revenue is growing positively over 3 years (CAGR: +2.9%). Slight decline of -1% vs 2015. After deducting consumption (0 €), gross margin stands at 150 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 47 k€, representing 31.3% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -22%, reducing margin by 8.4 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 24 k€, i.e. 15.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 5%. 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 90%. 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 2.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 31.3% 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 2128.42. 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 1.1x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 572 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 98 days. The gap of 474 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 1065 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 4523 days of revenue, i.e. 1.9 M€ to permanently finance.

Based on 1762 transactions of similar company sales (all years), the value of SARL LE PASSAGE 2000 is estimated at 165 209 € (range 59 339€ - 332 046€). With an EBITDA of 47 140€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.65x (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.