ARC EN CIEL NORMANDIE SAS : revenue, balance sheet and financial ratios

In 2024, ARC EN CIEL NORMANDIE SAS achieves revenue of 3.3 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +48.5%. Vs 2023: +6%. After deducting consumption (187 k€), gross margin stands at 3.1 M€, i.e. a rate of 94%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 196 k€, representing 5.9% of revenue. Positive scissor effect: EBITDA margin improves by +11.5 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -48 k€ (-1.4% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at -39%. 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 -11%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 87.83. 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 129.8x. 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: 56 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 135 days. Excellent situation: suppliers finance 79 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 (-15 days): operations structurally generate cash. Notable WCR improvement over the period (-1913%), freeing up cash.

Based on 53 transactions of similar company sales (all years), the value of ARC EN CIEL NORMANDIE SAS is estimated at 753 106 € (range 309 085€ - 1 237 543€). With an EBITDA of 195 946€, the sector multiple of 2.6x is applied. 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.
Medium reliability: estimate to be confirmed with in-depth analysis.