AJIEL HOTEL LOUIS ET CIE : revenue, balance sheet and financial ratios

In 2023, AJIEL HOTEL LOUIS ET CIE achieves revenue of 3.0 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +7.9%. Vs 2022, growth of +11% (2.7 M€ -> 3.0 M€). After deducting consumption (112 k€), gross margin stands at 2.9 M€, i.e. a rate of 96%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.2 M€, representing 38.2% of revenue. Warning negative scissor effect: despite revenue change (+11%), EBITDA varies by +3%, reducing margin by 3.0 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 871 k€, i.e. 28.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 118%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 39%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 29.5% 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 573.20. 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 3.6x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 6 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 66 days. Excellent situation: suppliers finance 60 days of the operating cycle (retail model). Inventory turnover is 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-25 days): operations structurally generate cash. Notable WCR improvement over the period (-143%), freeing up cash.

Based on 108 transactions of similar company sales in 2023, the value of AJIEL HOTEL LOUIS ET CIE is estimated at 3 575 176 € (range 1 466 368€ - 7 977 109€). With an EBITDA of 1 158 460€, the sector multiple of 3.7x is applied. The price/revenue ratio is 0.74x (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.