TRADITIONS D'UKRAINE : revenue, balance sheet and financial ratios

In 2022, TRADITIONS D'UKRAINE achieves revenue of 265 k€. Revenue is growing positively over 6 years (CAGR: +2.7%). Slight decline of -0% vs 2021. After deducting consumption (61 k€), gross margin stands at 204 k€, i.e. a rate of 77%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4 k€, representing 1.6% of revenue. Warning negative scissor effect: despite revenue change (-0%), EBITDA varies by -87%, reducing margin by 10.7 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -456 € (-0.2% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 5%. 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 65%. 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 1.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 1.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 244.65. 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 2.3x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 110 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 62 days. The gap of 48 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 6 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 114 days of revenue, i.e. 84 k€ to permanently finance. Over 2017-2022, WCR increased by +30%, requiring additional financing.

Based on 109 transactions of similar company sales in 2022, the value of TRADITIONS D'UKRAINE is estimated at 52 949 € (range 32 827€ - 88 203€). With an EBITDA of 4 366€, 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.