SOC HOTEL SQUARE MONGE HOTEL : revenue, balance sheet and financial ratios

In 2023, SOC HOTEL SQUARE MONGE HOTEL achieves revenue of 2.9 M€. Over the period 2019-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +19.8%. Vs 2022, growth of +24% (2.4 M€ -> 2.9 M€). After deducting consumption (95 k€), gross margin stands at 2.8 M€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.4 M€, representing 49.2% of revenue. Positive scissor effect: EBITDA margin improves by +7.8 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 878 k€, i.e. 30.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 74%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 53%. 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 1.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 38.6% 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 704.15. 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 1.6x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 1 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 46 days. Excellent situation: suppliers finance 45 days of the operating cycle (retail model). Inventory turnover is 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 152 days of revenue, i.e. 1.2 M€ to permanently finance. Notable WCR improvement over the period (-57%), freeing up cash.

Based on 108 transactions of similar company sales in 2023, the value of SOC HOTEL SQUARE MONGE HOTEL is estimated at 4 076 894 € (range 1 684 521€ - 9 259 735€). With an EBITDA of 1 441 122€, the sector multiple of 3.7x is applied. The price/revenue ratio is 0.74x (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.