SEBASTIEN LOEB PROJECT : revenue, balance sheet and financial ratios

In 2023, SEBASTIEN LOEB PROJECT achieves revenue of 365 k€. Revenue is declining over the period 2016-2023 (CAGR: -9.6%). Slight decline of -6% vs 2022. After deducting consumption (4 k€), gross margin stands at 361 k€, i.e. a rate of 99%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 136 k€, representing 37.3% of revenue. Warning negative scissor effect: despite revenue change (-6%), EBITDA varies by -25%, reducing margin by 9.6 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 226 k€, i.e. 62.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 139%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 41%. 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 6.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 62.3% 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 2845.80. 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 0.4x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 56 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 148 days. Excellent situation: suppliers finance 92 days of the operating cycle (retail model). Inventory turnover is 16 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 497 days of revenue, i.e. 503 k€ to permanently finance. Notable WCR improvement over the period (-47%), freeing up cash.

Based on 161 transactions of similar company sales (all years), the value of SEBASTIEN LOEB PROJECT is estimated at 627 704 € (range 315 840€ - 1 086 921€). With an EBITDA of 136 118€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.62x (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.