SOCIETE NOUVELLE ROI THEODORE : revenue, balance sheet and financial ratios

In 2022, SOCIETE NOUVELLE ROI THEODORE achieves revenue of 2.9 M€. Over the period 2018-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +7.2%. Vs 2021, growth of +17% (2.4 M€ -> 2.9 M€). After deducting consumption (245 k€), gross margin stands at 2.6 M€, i.e. a rate of 91%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 343 k€, representing 12.0% of revenue. Warning negative scissor effect: despite revenue change (+17%), EBITDA varies by -40%, reducing margin by 11.4 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. 5.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 88%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 41%. 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 3.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 15.0% 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 134.79. 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 5.3x. 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: 2 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 32 days. Favorable situation: supplier credit is longer than customer credit by 30 days. Inventory turnover is 2 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-12 days): operations structurally generate cash.

Based on 164 transactions of similar company sales in 2022, the value of SOCIETE NOUVELLE ROI THEODORE is estimated at 1 762 391 € (range 664 649€ - 3 235 300€). With an EBITDA of 342 602€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.96x (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.