UNITED ORTHOPEDIC CORPORATION (FRANCE) : revenue, balance sheet and financial ratios

In 2024, UNITED ORTHOPEDIC CORPORATION (FRANCE) achieves revenue of 32.1 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +89.5%. Vs 2023, growth of +14% (28.2 M€ -> 32.1 M€). After deducting consumption (14.2 M€), gross margin stands at 17.9 M€, i.e. a rate of 56%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 77 k€, representing 0.2% of revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -42 k€ (-0.1% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 8%. 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 34%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 0.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 153.27. 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 26.1x. 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: 71 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 164 days. Excellent situation: suppliers finance 93 days of the operating cycle (retail model). Inventory turnover is 186 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 272 days of revenue, i.e. 24.2 M€ to permanently finance. Over 2016-2024, WCR increased by +1395%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of UNITED ORTHOPEDIC CORPORATION (FRANCE) is estimated at 2 599 300 € (range 1 407 187€ - 7 893 974€). With an EBITDA of 76 870€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (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.