TENNANT : revenue, balance sheet and financial ratios

In 2024, TENNANT achieves revenue of 43.8 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +11.6%. Slight decline of -6% vs 2023. After deducting consumption (16.1 M€), gross margin stands at 27.7 M€, i.e. a rate of 63%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 6.0 M€, representing 13.6% of revenue. Warning negative scissor effect: despite revenue change (-6%), EBITDA varies by -42%, reducing margin by 8.5 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 1.8 M€, i.e. 4.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 11.5% 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 134.72. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 91 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 251 days. Excellent situation: suppliers finance 160 days of the operating cycle (retail model). Inventory turnover is 49 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 209 days of revenue, i.e. 25.5 M€ to permanently finance. Over 2016-2024, WCR increased by +894%, requiring additional financing.

Based on 229 transactions of similar company sales (all years), the value of TENNANT is estimated at 9 699 198 € (range 3 825 873€ - 28 919 631€). With an EBITDA of 5 953 288€, the sector multiple of 1.6x is applied. The price/revenue ratio is 0.32x (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.