WAKAM SERVICES : revenue, balance sheet and financial ratios

In 2024, WAKAM SERVICES achieves revenue of 5.5 M€. Activity remains stable over the period (CAGR: -3.8%). Slight decline of -5% vs 2023. After deducting consumption (2.0 M€), gross margin stands at 3.5 M€, i.e. a rate of 64%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 355 k€, representing 6.5% of revenue. Warning negative scissor effect: despite revenue change (-5%), EBITDA varies by -63%, reducing margin by 10.1 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 506 k€, i.e. 9.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -215%. 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 -54%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 17.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 9.7% 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 277.13. 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 74.0x. 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: 425 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 27 days. The gap of 398 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 341 days of revenue, i.e. 5.2 M€ to permanently finance. Over 2019-2024, WCR increased by +31%, requiring additional financing.

Based on 193 transactions of similar company sales (all years), the value of WAKAM SERVICES is estimated at 2 025 367 € (range 599 905€ - 5 014 251€). With an EBITDA of 354 717€, the sector multiple of 1.2x is applied. The price/revenue ratio is 0.98x (in line with sector norms). 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.