WORK MUSIC CONCEPT : revenue, balance sheet and financial ratios

In 2024, WORK MUSIC CONCEPT achieves revenue of 31 k€. Revenue is growing positively over 8 years (CAGR: +3.2%). Slight decline of -8% vs 2023. After deducting consumption (730 €), gross margin stands at 30 k€, i.e. a rate of 98%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -12 k€, representing -39.8% of revenue. Warning negative scissor effect: despite revenue change (-8%), EBITDA varies by -41%, reducing margin by 13.7 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 20 €, i.e. 0.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 13%. 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 1%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 13.4% 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 6766.38. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 5 days. Favorable situation: supplier credit is longer than customer credit by 5 days. Inventory turnover is 456 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. WCR is negative (-114 days): operations structurally generate cash. Notable WCR improvement over the period (-259%), freeing up cash.

Based on 109 transactions of similar company sales (all years), the value of WORK MUSIC CONCEPT is estimated at 3 110 € (range 1 599€ - 5 485€). The price/revenue ratio is 0.17x (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.