SIMPLICITI : revenue, balance sheet and financial ratios

In 2024, SIMPLICITI achieves revenue of 19.9 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.7%. Vs 2023: +4%. After deducting consumption (3.8 M€), gross margin stands at 16.1 M€, i.e. a rate of 81%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.1 M€, representing 10.4% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 611 k€, i.e. 3.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 157%. 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 31%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 17.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 6.5% 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 171.47. 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 57.3x. 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: 139 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 75 days. The gap of 64 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 46 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 90 days of revenue, i.e. 5.0 M€ to permanently finance. Over 2016-2024, WCR increased by +70%, requiring additional financing.

Based on 215 transactions of similar company sales (all years), the value of SIMPLICITI is estimated at 2 142 776 € (range 971 084€ - 6 719 742€). With an EBITDA of 2 058 115€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.16x (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.