SARL MARCHESI TP : revenue, balance sheet and financial ratios

In 2018, SARL MARCHESI TP achieves revenue of 200 k€. Over the period 2016-2018, the company shows strong growth with a CAGR (compound annual growth rate) of +25.4%. Vs 2017, growth of +102% (99 k€ -> 200 k€). After deducting consumption (44 k€), gross margin stands at 155 k€, i.e. a rate of 78%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 21 k€, representing 10.6% of revenue. Warning negative scissor effect: despite revenue change (+102%), EBITDA varies by +53%, reducing margin by 3.3 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 8 k€, i.e. 4.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 104%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 47%. 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 9.4% 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 452.62. 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 7.4x. 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: 13 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 12 days. The company must finance 1 days of gap between collections and payments. Inventory turnover is 33 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 57 days of revenue, i.e. 31 k€ to permanently finance. Over 2016-2018, WCR increased by +28%, requiring additional financing.

Based on 120 transactions of similar company sales (all years), the value of SARL MARCHESI TP is estimated at 33 831 € (range 12 304€ - 84 023€). With an EBITDA of 21 135€, the sector multiple of 1.4x is applied. The price/revenue ratio is 0.22x (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.