SLQI SYSTEMS : revenue, balance sheet and financial ratios

In 2015, SLQI SYSTEMS achieves revenue of 33 k€. Over the period 2012-2015, the company shows strong growth with a CAGR (compound annual growth rate) of +42.2%. Significant drop of -36% vs 2014. After deducting consumption (10 k€), gross margin stands at 23 k€, i.e. a rate of 70%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -15 k€, representing -44.8% of revenue. Warning negative scissor effect: despite revenue change (-36%), EBITDA varies by -4804%, reducing margin by 45.4 pts. This reflects costs rising faster than revenue. Negative EBITDA means operations do not cover current expenses: concerning situation. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 602 €, i.e. 1.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1290%. 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 6%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 89.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 436.13. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 529 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 284 days. The gap of 245 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 378 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1318 days of revenue, i.e. 121 k€ to permanently finance. Over 2012-2015, WCR increased by +3574%, requiring additional financing.

Based on 580 transactions of similar company sales (all years), the value of SLQI SYSTEMS is estimated at 10 162 € (range 4 575€ - 18 022€). The price/revenue ratio is 0.45x (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.