VERRISSIMA INDUSTRIE : revenue, balance sheet and financial ratios

In 2024, VERRISSIMA INDUSTRIE achieves revenue of 7.5 M€. Activity remains stable over the period (CAGR: -1.6%). Significant drop of -18% vs 2023. After deducting consumption (2.5 M€), gross margin stands at 5.0 M€, i.e. a rate of 67%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -299 k€, representing -4.0% of revenue. Warning negative scissor effect: despite revenue change (-18%), EBITDA varies by -155%, reducing margin by 9.9 pts. This reflects costs rising faster than revenue. Negative EBITDA means operations do not cover current expenses: concerning situation. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 38 k€, i.e. 0.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 80%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 44%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 28.1 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 248.34. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 31 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 98 days. Excellent situation: suppliers finance 67 days of the operating cycle (retail model). Inventory turnover is 21 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 62 days of revenue, i.e. 1.3 M€ to permanently finance. Notable WCR improvement over the period (-21%), freeing up cash.

Based on 228 transactions of similar company sales (all years), the value of VERRISSIMA INDUSTRIE is estimated at 605 066 € (range 405 676€ - 1 782 583€). The price/revenue ratio is 0.13x (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.