SUN HOTEL : revenue, balance sheet and financial ratios

In 2024, SUN HOTEL achieves revenue of 3.6 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.6%. Slight decline of -4% vs 2023. After deducting consumption (463 k€), gross margin stands at 3.2 M€, i.e. a rate of 87%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 500 k€, representing 13.8% of revenue. Warning negative scissor effect: despite revenue change (-4%), EBITDA varies by -34%, reducing margin by 6.2 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 238 k€, i.e. 6.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 23%. 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 67%. 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 1.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 13.3% 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 205.05. 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 1.8x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 13 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 66 days. Excellent situation: suppliers finance 53 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. WCR is negative (-7 days): operations structurally generate cash. Notable WCR improvement over the period (-180%), freeing up cash.

Based on 261 transactions of similar company sales (all years), the value of SUN HOTEL is estimated at 2 426 645 € (range 1 427 089€ - 4 650 786€). With an EBITDA of 500 341€, the sector multiple of 5.3x is applied. The price/revenue ratio is 0.75x (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.