TROIS SOLEILS : revenue, balance sheet and financial ratios

In 2024, TROIS SOLEILS achieves revenue of 4.7 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.8%. Vs 2023, growth of +70% (2.8 M€ -> 4.7 M€). After deducting consumption (2.4 M€), gross margin stands at 2.3 M€, i.e. a rate of 49%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 392 k€, representing 8.3% of revenue. Warning negative scissor effect: despite revenue change (+70%), EBITDA varies by +5%, reducing margin by 5.1 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 54 k€, i.e. 1.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 791%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 20.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 427.43. 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 20.6x. 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: 70 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 44 days. The company must finance 26 days of gap between collections and payments. Inventory turnover is 331 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 394 days of revenue, i.e. 5.2 M€ to permanently finance.

Based on 276 transactions of similar company sales (all years), the value of TROIS SOLEILS is estimated at 5 772 551 € (range 1 249 655€ - 7 865 033€). With an EBITDA of 391 941€, the sector multiple of 11.9x is applied. The price/revenue ratio is 2.33x (premium 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.