SOTARBAT PROMOTION : revenue, balance sheet and financial ratios

In 2024, SOTARBAT PROMOTION achieves revenue of 5.8 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +15.1%. Significant drop of -27% vs 2023. After deducting consumption (0 €), gross margin stands at 5.8 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 67 k€, representing 1.2% of revenue. Warning negative scissor effect: despite revenue change (-27%), EBITDA varies by -83%, reducing margin by 4.0 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.9 M€, i.e. 50.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 5%. 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 70%. 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 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 22.1% 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 351.95. 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 105.4x. 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: 32 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 3246 days. Excellent situation: suppliers finance 3214 days of the operating cycle (retail model). Inventory turnover is 489 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1204 days of revenue, i.e. 19.3 M€ to permanently finance. Over 2016-2024, WCR increased by +63%, requiring additional financing.

Based on 80 transactions of similar company sales (all years), the value of SOTARBAT PROMOTION is estimated at 1 891 391 € (range 614 692€ - 5 072 299€). With an EBITDA of 67 024€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.28x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.