WAM PARK DEVELOPPEMENT : revenue, balance sheet and financial ratios

In 2024, WAM PARK DEVELOPPEMENT achieves revenue of 1.2 M€. Over the period 2018-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +165.5%. Vs 2023, growth of +118% (568 k€ -> 1.2 M€). After deducting consumption (51 €), gross margin stands at 1.2 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 164 k€, representing 13.3% of revenue. This level of operating margin is satisfactory for the sector. Net income is negative at -305 k€ (-24.7% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 329%. 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 20%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 31.4% 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 355.52. 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 450.5x. 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: 324 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 86 days. The gap of 238 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 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 502 days of revenue, i.e. 1.7 M€ to permanently finance. Over 2018-2024, WCR increased by +4266%, requiring additional financing.

Based on 114 transactions of similar company sales (all years), the value of WAM PARK DEVELOPPEMENT is estimated at 857 846 € (range 457 180€ - 1 452 978€). With an EBITDA of 164 287€, the sector multiple of 5.1x is applied. The price/revenue ratio is 0.72x (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.