SOCIETE TSIGOYE BATIMENT : revenue, balance sheet and financial ratios

In 2020, SOCIETE TSIGOYE BATIMENT achieves revenue of 357 k€. Over the period 2017-2020, the company shows strong growth with a CAGR (compound annual growth rate) of +142.6%. Vs 2018, growth of +168% (133 k€ -> 357 k€). After deducting consumption (88 k€), gross margin stands at 268 k€, i.e. a rate of 75%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 100 k€, representing 28.1% of revenue. Positive scissor effect: EBITDA margin improves by +48.4 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 98 k€, i.e. 27.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 106%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 42%. 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 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 27.6% 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 233.88. 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 0.2x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 196 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 33 days. The gap of 163 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 11 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 115 days of revenue, i.e. 114 k€ to permanently finance. Over 2017-2020, WCR increased by +3111%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of SOCIETE TSIGOYE BATIMENT is estimated at 243 010 € (range 93 499€ - 455 415€). With an EBITDA of 100 142€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.11x (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.