SOCIETE EUROPEENNNE TRANSACTION COMMERC : revenue, balance sheet and financial ratios

In 2021, SOCIETE EUROPEENNNE TRANSACTION COMMERC achieves revenue of 322 k€. Revenue is declining over the period 2016-2021 (CAGR: -7.3%). Vs 2020, growth of +59% (203 k€ -> 322 k€). After deducting consumption (192 k€), gross margin stands at 130 k€, i.e. a rate of 40%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 20 k€, representing 6.2% of revenue. Positive scissor effect: EBITDA margin improves by +6.7 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 11 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 14%. 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 70%. 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 6.3 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 3.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 475.01. 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 34.0x. 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: 9 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 126 days. Excellent situation: suppliers finance 117 days of the operating cycle (retail model). Inventory turnover is 251 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 338 days of revenue, i.e. 302 k€ to permanently finance.

Based on 124 transactions of similar company sales (all years), the value of SOCIETE EUROPEENNNE TRANSACTION COMMERC is estimated at 45 850 € (range 19 851€ - 106 989€). With an EBITDA of 19 804€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.17x (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.