SAVOY : revenue, balance sheet and financial ratios

In 2024, SAVOY achieves revenue of 2.0 M€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +16.7%. Vs 2022, growth of +27% (1.6 M€ -> 2.0 M€). After deducting consumption (997 k€), gross margin stands at 1.0 M€, i.e. a rate of 51%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 247 k€, representing 12.2% of revenue. Positive scissor effect: EBITDA margin improves by +44.3 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.9 M€, i.e. 143.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 359%. 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 20%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 9.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 221.7% 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 3630.84. 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 1371.4x. 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: 198 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 130 days. The gap of 68 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 3936 days of revenue, i.e. 22.2 M€ to permanently finance. Over 2015-2024, WCR increased by +311%, requiring additional financing.

Based on 277 transactions of similar company sales (all years), the value of SAVOY is estimated at 1 637 430 € (range 432 906€ - 4 875 328€). With an EBITDA of 246 981€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.29x (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.