TRACK SOLUTION GROUP : revenue, balance sheet and financial ratios

In 2024, TRACK SOLUTION GROUP achieves revenue of 2.9 M€. Over the period 2022-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +41.1%. Vs 2023, growth of +37% (2.1 M€ -> 2.9 M€). After deducting consumption (37 €), gross margin stands at 2.9 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 103 k€, representing 3.6% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.7 M€, i.e. 94.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 21%. 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 74%. 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 0.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 93.7% 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 289.35. 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 58.7x. 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: 122 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 40 days. The gap of 82 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 203 days of revenue, i.e. 1.6 M€ to permanently finance.

Based on 173 transactions of similar company sales (all years), the value of TRACK SOLUTION GROUP is estimated at 2 441 411 € (range 865 417€ - 6 317 714€). With an EBITDA of 103 084€, the sector multiple of 3.4x is applied. The price/revenue ratio is 0.38x (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.