ALLIANCE FUNERAIRE MEDITERRANEE : revenue, balance sheet and financial ratios

In 2019, ALLIANCE FUNERAIRE MEDITERRANEE achieves revenue of 13 k€. Revenue is declining over the period 2015-2019 (CAGR: -9.0%). Significant drop of -24% vs 2018. After deducting consumption (0 €), gross margin stands at 13 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 7 k€, representing 51.2% of revenue. Warning negative scissor effect: despite revenue change (-24%), EBITDA varies by -54%, reducing margin by 34.1 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 103 k€, i.e. 804.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 19%. 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 81%. 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 30.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 20.8% 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 2601.97. 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 19.9x. 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: 342 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 94 days. The gap of 248 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 2122 days of revenue, i.e. 75 k€ to permanently finance. Over 2015-2019, WCR increased by +854%, requiring additional financing.

Based on 234 transactions of similar company sales in 2019, the value of ALLIANCE FUNERAIRE MEDITERRANEE is estimated at 151 846 € (range 56 429€ - 304 426€). With an EBITDA of 6 539€, the sector multiple of 5.5x is applied. The price/revenue ratio is 0.69x (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.