VALORITY CREDIT : revenue, balance sheet and financial ratios

In 2024, VALORITY CREDIT achieves revenue of 1.6 M€. Activity remains stable over the period (CAGR: -1.9%). Significant drop of -13% vs 2023. After deducting consumption (0 €), gross margin stands at 1.6 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 227 k€, representing 13.9% of revenue. Positive scissor effect: EBITDA margin improves by +14.0 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Net income is negative at -16 k€ (-1.0% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 478%. 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 10%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.3 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.3% 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 159.34. 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 21.4x. 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: 135 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 98 days. The gap of 37 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 64 days of revenue, i.e. 290 k€ to permanently finance. Notable WCR improvement over the period (-31%), freeing up cash.

Based on 103 transactions of similar company sales (all years), the value of VALORITY CREDIT is estimated at 547 526 € (range 259 964€ - 1 225 753€). With an EBITDA of 226 811€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.30x (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.