SOC HOTELS ECONOMIQUES DE LA TESTE : revenue, balance sheet and financial ratios

In 2024, SOC HOTELS ECONOMIQUES DE LA TESTE achieves revenue of 2.2 M€. Activity remains stable over the period (CAGR: -0.6%). Slight decline of -2% vs 2023. After deducting consumption (231 k€), gross margin stands at 2.0 M€, i.e. a rate of 90%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 336 k€, representing 15.2% of revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Net income is negative at -26 k€ (-1.2% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 257%. 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 18%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.7% 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 23.15. 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 8.8x. 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: 3 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 36 days. Excellent situation: suppliers finance 33 days of the operating cycle (retail model). Inventory turnover is 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-27 days): operations structurally generate cash. Notable WCR improvement over the period (-191%), freeing up cash.

Based on 99 transactions of similar company sales in 2024, the value of SOC HOTELS ECONOMIQUES DE LA TESTE is estimated at 1 454 105 € (range 458 656€ - 2 761 221€). With an EBITDA of 336 167€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.54x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.