TRANS-VI : revenue, balance sheet and financial ratios

In 2023, TRANS-VI achieves revenue of 5.2 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +8.8%. Vs 2022, growth of +11% (4.7 M€ -> 5.2 M€). After deducting consumption (1.2 M€), gross margin stands at 4.1 M€, i.e. a rate of 78%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 141 k€, representing 2.7% of revenue. Warning negative scissor effect: despite revenue change (+11%), EBITDA varies by -61%, reducing margin by 4.9 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 54 k€, i.e. 1.0% 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 50%. 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 1.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 2.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 152.47. 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 7.9x. 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: 48 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 39 days. The company must finance 9 days of gap between collections and payments. Inventory turnover is 31 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 64 days of revenue, i.e. 933 k€ to permanently finance. Over 2016-2023, WCR increased by +33%, requiring additional financing.

Based on 139 transactions of similar company sales in 2023, the value of TRANS-VI is estimated at 904 408 € (range 551 338€ - 1 517 024€). With an EBITDA of 141 190€, the sector multiple of 4.1x is applied. The price/revenue ratio is 0.36x (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.