SOCIETE HOTELIERE BANDOL : revenue, balance sheet and financial ratios

In 2024, SOCIETE HOTELIERE BANDOL achieves revenue of 4.2 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.9%. Vs 2023: +4%. After deducting consumption (19 k€), gross margin stands at 4.2 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.6 M€, representing 63.2% of revenue. Positive scissor effect: EBITDA margin improves by +20.2 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.8 M€, i.e. 42.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 178%. 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 4.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 49.3% 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 1117.85. 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 14.3x. 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: 153 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 25 days. The gap of 128 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 243 days of revenue, i.e. 2.8 M€ to permanently finance. Over 2016-2024, WCR increased by +23%, requiring additional financing.

Based on 169 transactions of similar company sales in 2024, the value of SOCIETE HOTELIERE BANDOL is estimated at 10 837 741 € (range 3 074 606€ - 19 496 060€). With an EBITDA of 2 646 701€, 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.