SARL LE BIHAN DIFFUSION : revenue, balance sheet and financial ratios

In 2019, SARL LE BIHAN DIFFUSION achieves revenue of 65 k€. Revenue is growing positively over 3 years (CAGR: +2.4%). Slight decline of -2% vs 2017. After deducting consumption (8 k€), gross margin stands at 57 k€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -282 €, representing -0.4% of revenue. Warning negative scissor effect: despite revenue change (-2%), EBITDA varies by -118%, reducing margin by 2.8 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 190 €, i.e. 0.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 275%. 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 67%. 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 3.7 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.8% 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 85.03. 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: 26 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 6 days. The company must finance 20 days of gap between collections and payments. Inventory turnover is 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 5 days of revenue, i.e. 971 € to permanently finance. Over 2016-2019, WCR increased by +66%, requiring additional financing.

Based on 132 transactions of similar company sales (all years), the value of SARL LE BIHAN DIFFUSION is estimated at 13 836 € (range 9 176€ - 24 996€). 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.