SOCIETE TERRE SOLEIL EAU FORET : revenue, balance sheet and financial ratios

In 2023, SOCIETE TERRE SOLEIL EAU FORET achieves revenue of 1.2 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +8.6%. Vs 2022, growth of +16% (1.0 M€ -> 1.2 M€). After deducting consumption (47 k€), gross margin stands at 1.1 M€, i.e. a rate of 96%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 325 k€, representing 27.2% of 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 37 k€, i.e. 3.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -2022%. 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 -5%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 29.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 13.9% 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 83.15. 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 41.0x. 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: 17 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 78 days. Excellent situation: suppliers finance 61 days of the operating cycle (retail model). Inventory turnover is 3 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 5 days of revenue, i.e. 17 k€ to permanently finance. Over 2016-2023, WCR increased by +326%, requiring additional financing.

Based on 108 transactions of similar company sales in 2023, the value of SOCIETE TERRE SOLEIL EAU FORET is estimated at 894 334 € (range 355 930€ - 2 062 632€). With an EBITDA of 324 606€, the sector multiple of 3.7x is applied. The price/revenue ratio is 0.74x (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.