SPORTS CO 74 : revenue, balance sheet and financial ratios

In 2025, SPORTS CO 74 achieves revenue of 4.7 M€. Over the period 2017-2025, the company shows strong growth with a CAGR (compound annual growth rate) of +21.0%. Slight decline of -8% vs 2024. After deducting consumption (2.7 M€), gross margin stands at 2.0 M€, i.e. a rate of 43%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 419 k€, representing 9.0% of revenue. Positive scissor effect: EBITDA margin improves by +3.5 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 244 k€, i.e. 5.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 37%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 53%. 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 1.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 336.47. 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 6.3x. 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: 96 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 46 days. The gap of 50 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 64 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 153 days of revenue, i.e. 2.0 M€ to permanently finance. Over 2017-2025, WCR increased by +427%, requiring additional financing.

Based on 239 transactions of similar company sales (all years), the value of SPORTS CO 74 is estimated at 1 329 520 € (range 597 384€ - 2 324 719€). With an EBITDA of 419 241€, the sector multiple of 3.4x 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.