THERMO ELECTRON SAS : revenue, balance sheet and financial ratios

In 2024, THERMO ELECTRON SAS achieves revenue of 154.9 M€. Revenue is growing positively over 9 years (CAGR: +4.6%). Vs 2023, growth of +15% (134.2 M€ -> 154.9 M€). After deducting consumption (88.6 M€), gross margin stands at 66.2 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 3.1 M€, representing 2.0% of revenue. Warning negative scissor effect: despite revenue change (+15%), EBITDA varies by -53%, reducing margin by 2.9 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 2.6 M€, i.e. 1.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 54%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 31%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 268.45. 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 22.9x. 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: 121 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 26 days. The gap of 95 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 29 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 120 days of revenue, i.e. 51.5 M€ to permanently finance. Over 2016-2024, WCR increased by +169%, requiring additional financing.

Based on 100 transactions of similar company sales (all years), the value of THERMO ELECTRON SAS is estimated at 35 480 710 € (range 20 793 914€ - 56 430 882€). With an EBITDA of 3 107 409€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.53x (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.