TS ROOSEVELT : revenue, balance sheet and financial ratios

In 2024, TS ROOSEVELT achieves revenue of 1.6 M€. Revenue is declining over the period 2017-2024 (CAGR: -9.0%). Significant drop of -16% vs 2023. After deducting consumption (339 k€), gross margin stands at 1.2 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 191 k€, representing 12.2% of revenue. Warning negative scissor effect: despite revenue change (-16%), EBITDA varies by -34%, reducing margin by 3.3 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 25 k€, i.e. 1.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 311%. 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 18%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 17.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 161.21. 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 19.1x. 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: 64 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 49 days. The company must finance 15 days of gap between collections and payments. Inventory turnover is 3 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 47 days of revenue, i.e. 206 k€ to permanently finance. Over 2017-2024, WCR increased by +557%, requiring additional financing.

Based on 698 transactions of similar company sales in 2024, the value of TS ROOSEVELT is estimated at 816 623 € (range 426 113€ - 1 483 884€). With an EBITDA of 190 870€, the sector multiple of 5.4x is applied. The price/revenue ratio is 0.57x (in line with sector norms). 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.