SOC PRODUCTION ENROBES ROUENNAISE : revenue, balance sheet and financial ratios

In 2024, SOC PRODUCTION ENROBES ROUENNAISE achieves revenue of 3.2 M€. Revenue is growing positively over 9 years (CAGR: +0.9%). Significant drop of -26% vs 2023. After deducting consumption (2.2 M€), gross margin stands at 989 k€, i.e. a rate of 31%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 276 k€, representing 8.6% of revenue. Warning negative scissor effect: despite revenue change (-26%), EBITDA varies by -40%, reducing margin by 2.1 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 154 k€, i.e. 4.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 9%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 64%. 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 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.0% 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 246.60. 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 0.9x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 28 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 77 days. Excellent situation: suppliers finance 49 days of the operating cycle (retail model). Inventory turnover is 22 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 60 days of revenue, i.e. 536 k€ to permanently finance. Notable WCR improvement over the period (-30%), freeing up cash.

Based on 228 transactions of similar company sales (all years), the value of SOC PRODUCTION ENROBES ROUENNAISE is estimated at 392 003 € (range 166 427€ - 1 050 393€). With an EBITDA of 276 045€, the sector multiple of 1.5x is applied. The price/revenue ratio is 0.13x (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.