SOCIETE D'EXPANSION TOURISTIQUE : revenue, balance sheet and financial ratios

In 2024, SOCIETE D'EXPANSION TOURISTIQUE achieves revenue of 372 k€. Revenue is growing positively over 6 years (CAGR: +3.8%). Vs 2023: +1%. After deducting consumption (164 k€), gross margin stands at 208 k€, i.e. a rate of 56%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 47 k€, representing 12.7% of revenue. Warning negative scissor effect: despite revenue change (+1%), EBITDA varies by -46%, reducing margin by 11.2 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 12 k€, i.e. 3.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 184%. 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 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 10.3% 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 843.36. 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 18.1x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 8 days. Favorable situation: supplier credit is longer than customer credit by 8 days. Inventory turnover is 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 18 days of revenue, i.e. 18 k€ to permanently finance. Notable WCR improvement over the period (-61%), freeing up cash.

Based on 169 transactions of similar company sales in 2024, the value of SOCIETE D'EXPANSION TOURISTIQUE is estimated at 238 999 € (range 74 447€ - 434 276€). With an EBITDA of 47 136€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.81x (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.