TECHNIK DESIGN SERVICE : revenue, balance sheet and financial ratios

In 2022, TECHNIK DESIGN SERVICE achieves revenue of 229 k€. Activity remains stable over the period (CAGR: -0.8%). Vs 2021, growth of +36% (169 k€ -> 229 k€). After deducting consumption (71 k€), gross margin stands at 158 k€, i.e. a rate of 69%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 9 k€, representing 4.0% of revenue. Warning negative scissor effect: despite revenue change (+36%), EBITDA varies by -56%, reducing margin by 8.4 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 15 k€, i.e. 6.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 74%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 25%. The balance between equity and debt is satisfactory. 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 7.5% 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 198.73. 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 5.3x. 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: 68 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 30 days. The gap of 38 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 77 days of revenue, i.e. 49 k€ to permanently finance. Over 2016-2022, WCR increased by +160%, requiring additional financing.

Based on 109 transactions of similar company sales in 2022, the value of TECHNIK DESIGN SERVICE is estimated at 50 340 € (range 30 116€ - 92 697€). With an EBITDA of 9 278€, the sector multiple of 1.8x is applied. The price/revenue ratio is 0.48x (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.