SOCIETE DE TRAVAUX DE LA GUADELOUPE ET DE LA CARAIBES : revenue, balance sheet and financial ratios

In 2023, SOCIETE DE TRAVAUX DE LA GUADELOUPE ET DE LA CARAIBES achieves revenue of 3.7 M€. Revenue is growing positively over 6 years (CAGR: +3.1%). Vs 2020, growth of +31% (2.9 M€ -> 3.7 M€). After deducting consumption (949 k€), gross margin stands at 2.8 M€, i.e. a rate of 75%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 379 k€, representing 10.1% of revenue. Positive scissor effect: EBITDA margin improves by +7.1 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 114 k€, i.e. 3.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 11%. 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 38%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 9.1% 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 150.45. 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 1.2x. 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: 309 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 248 days. The gap of 61 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 46 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 380 days of revenue, i.e. 4.0 M€ to permanently finance. Over 2016-2023, WCR increased by +91%, requiring additional financing.

Based on 120 transactions of similar company sales (all years), the value of SOCIETE DE TRAVAUX DE LA GUADELOUPE ET DE LA CARAIBES is estimated at 593 225 € (range 219 889€ - 1 461 784€). With an EBITDA of 378 943€, the sector multiple of 1.4x is applied. The price/revenue ratio is 0.22x (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.