SELECT GUADELOUPE : revenue, balance sheet and financial ratios

In 2024, SELECT GUADELOUPE achieves revenue of 3.2 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +13.7%. Slight decline of -1% vs 2023. After deducting consumption (1.9 M€), gross margin stands at 1.3 M€, i.e. a rate of 41%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 111 k€, representing 3.5% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -41%, reducing margin by 2.3 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at 0 € (0.0% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 1675%. 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 3%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 34.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 228.83. 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 31.9x. 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: 58 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 75 days. Favorable situation: supplier credit is longer than customer credit by 17 days. Inventory turnover is 122 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 162 days of revenue, i.e. 1.4 M€ to permanently finance. Over 2016-2024, WCR increased by +246%, requiring additional financing.

Based on 145 transactions of similar company sales (all years), the value of SELECT GUADELOUPE is estimated at 411 073 € (range 195 255€ - 1 095 422€). With an EBITDA of 111 369€, the sector multiple of 2.6x is applied. The price/revenue ratio is 0.19x (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.