SW FRANCE : revenue, balance sheet and financial ratios

In 2024, SW FRANCE achieves revenue of 3.8 M€. Over the period 2020-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +37.5%. Vs 2023: +5%. After deducting consumption (1.2 M€), gross margin stands at 2.6 M€, i.e. a rate of 69%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 116 k€, representing 3.1% of revenue. Warning negative scissor effect: despite revenue change (+5%), EBITDA varies by -56%, reducing margin by 4.3 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 72 k€, i.e. 1.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 90%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 280.79. 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 32.7x. 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: 124 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 39 days. The gap of 85 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 2 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 120 days of revenue, i.e. 1.3 M€ to permanently finance. Over 2020-2024, WCR increased by +156%, requiring additional financing.

Based on 104 transactions of similar company sales (all years), the value of SW FRANCE is estimated at 381 376 € (range 215 037€ - 1 031 445€). With an EBITDA of 115 614€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.27x (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.