SOCIETE PROVENCALE DE VENTE DE MATERIEL : revenue, balance sheet and financial ratios

In 2024, SOCIETE PROVENCALE DE VENTE DE MATERIEL achieves revenue of 641 k€. Activity remains stable over the period (CAGR: -2.2%). Slight decline of -9% vs 2023. After deducting consumption (0 €), gross margin stands at 641 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 122 k€, representing 19.0% of revenue. Warning negative scissor effect: despite revenue change (-9%), EBITDA varies by -40%, reducing margin by 9.7 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 673 k€, i.e. 105.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 21%. 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 78%. 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 1.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 103.7% 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 1811.58. 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 14.6x. 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: 34 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 44 days. Favorable situation: supplier credit is longer than customer credit by 10 days. Overall, WCR represents 43 days of revenue, i.e. 77 k€ to permanently finance. Over 2016-2024, WCR increased by +437%, requiring additional financing.

Based on 54 transactions of similar company sales in 2024, the value of SOCIETE PROVENCALE DE VENTE DE MATERIEL is estimated at 605 136 € (range 245 814€ - 1 649 115€). With an EBITDA of 122 137€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.59x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.