VERT.R.D. : revenue, balance sheet and financial ratios

In 2024, VERT.R.D. achieves revenue of 5.9 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +16.2%. Vs 2023, growth of +81% (3.3 M€ -> 5.9 M€). After deducting consumption (2.2 M€), gross margin stands at 3.8 M€, i.e. a rate of 63%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 791 k€, representing 13.3% of revenue. Positive scissor effect: EBITDA margin improves by +5.7 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 518 k€, i.e. 8.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1%. 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 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 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 196.48. 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 0.7x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 160 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 79 days. The gap of 81 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 122 days of revenue, i.e. 2.0 M€ to permanently finance. Over 2016-2024, WCR increased by +1431%, requiring additional financing.

Based on 125 transactions of similar company sales (all years), the value of VERT.R.D. is estimated at 2 058 345 € (range 777 285€ - 3 643 529€). With an EBITDA of 790 592€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.35x (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.