SNC LNC THETA PROMOTION : revenue, balance sheet and financial ratios

In 2024, SNC LNC THETA PROMOTION achieves revenue of 23.8 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +22.8%. Significant drop of -18% vs 2023. After deducting consumption (24.6 M€), gross margin stands at -815 k€, i.e. a rate of -3%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 529 k€, representing 2.2% of revenue. Warning negative scissor effect: despite revenue change (-18%), EBITDA varies by -75%, reducing margin by 5.2 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 12 k€, i.e. 0.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 35642%. 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 0%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 387.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 321.14. 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 97.9x. 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: 384 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 99 days. The gap of 285 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 95 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 181 days of revenue, i.e. 11.9 M€ to permanently finance.

Based on 80 transactions of similar company sales (all years), the value of SNC LNC THETA PROMOTION is estimated at 2 265 778 € (range 828 643€ - 5 728 609€). With an EBITDA of 529 028€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.28x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.