SOUND AND COLORS : revenue, balance sheet and financial ratios

In 2025, SOUND AND COLORS achieves revenue of 5.2 M€. Activity remains stable over the period (CAGR: -2.4%). Vs 2024, growth of +21% (4.3 M€ -> 5.2 M€). After deducting consumption (3.0 M€), gross margin stands at 2.2 M€, i.e. a rate of 42%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 395 k€, representing 7.5% of revenue. Warning negative scissor effect: despite revenue change (+21%), EBITDA varies by -22%, reducing margin by 4.2 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 304 k€, i.e. 5.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 53%. Debt remains under control: the company retains capacity to raise new debt if needed. 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 3.7 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 197.72. 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 20.6x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 1 days. Favorable situation: supplier credit is longer than customer credit by 1 days. Inventory turnover is 213 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 107 days of revenue, i.e. 1.5 M€ to permanently finance.

Based on 109 transactions of similar company sales (all years), the value of SOUND AND COLORS is estimated at 832 766 € (range 492 447€ - 2 030 409€). With an EBITDA of 394 923€, the sector multiple of 2.0x is applied. The price/revenue ratio is 0.17x (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.