VERIZON CONNECT FRANCE : revenue, balance sheet and financial ratios

In 2024, VERIZON CONNECT FRANCE achieves revenue of 17.6 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +17.7%. Slight decline of -8% vs 2023. After deducting consumption (1.8 M€), gross margin stands at 15.8 M€, i.e. a rate of 90%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4.8 M€, representing 27.2% of revenue. Positive scissor effect: EBITDA margin improves by +8.5 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Net income is negative at -121 k€ (-0.7% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 316%. 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 16%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 26.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 288.06. 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 19.9x. 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: 171 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 29 days. The gap of 142 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 155 days of revenue, i.e. 7.6 M€ to permanently finance. Over 2016-2024, WCR increased by +294%, requiring additional financing.

Based on 103 transactions of similar company sales (all years), the value of VERIZON CONNECT FRANCE is estimated at 4 558 715 € (range 1 682 410€ - 13 034 140€). With an EBITDA of 4 800 354€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.25x (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.