TRANSPORTS HOSPITAL : revenue, balance sheet and financial ratios

In 2024, TRANSPORTS HOSPITAL achieves revenue of 1.2 M€. Revenue is growing positively over 8 years (CAGR: +3.5%). Vs 2023, growth of +11% (1.1 M€ -> 1.2 M€). After deducting consumption (252 k€), gross margin stands at 966 k€, i.e. a rate of 79%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 85 k€, representing 7.0% of revenue. Warning negative scissor effect: despite revenue change (+11%), EBITDA varies by -34%, reducing margin by 4.8 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 46 k€, i.e. 3.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 88%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 37%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 5.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 194.69. 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 6.5x. 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: 44 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 29 days. The company must finance 15 days of gap between collections and payments. Inventory turnover is 5 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 33 days of revenue, i.e. 112 k€ to permanently finance. Over 2016-2024, WCR increased by +48%, requiring additional financing.

Based on 71 transactions of similar company sales in 2024, the value of TRANSPORTS HOSPITAL is estimated at 153 341 € (range 70 616€ - 378 562€). With an EBITDA of 85 218€, the sector multiple of 0.9x is applied. The price/revenue ratio is 0.23x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.