ARMURERIE ANDRE LAMOTTE : revenue, balance sheet and financial ratios

In 2019, ARMURERIE ANDRE LAMOTTE achieves revenue of 189 k€. Over the period 2017-2019, the company shows strong growth with a CAGR (compound annual growth rate) of +5.2%. Vs 2018: +5%. After deducting consumption (136 k€), gross margin stands at 54 k€, i.e. a rate of 28%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 30 k€, representing 15.7% of revenue. Positive scissor effect: EBITDA margin improves by +9.8 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 24 k€, i.e. 12.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 6%. 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 77%. 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 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 12.8% 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 518.18. 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 0.2x. Danger: operating income does not cover interest charges, unsustainable situation.

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: 43 days. Excellent situation: suppliers finance 43 days of the operating cycle (retail model). Inventory turnover is 200 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 194 days of revenue, i.e. 102 k€ to permanently finance.

Based on 128 transactions of similar company sales in 2019, the value of ARMURERIE ANDRE LAMOTTE is estimated at 113 752 € (range 58 702€ - 227 685€). With an EBITDA of 29 729€, the sector multiple of 4.1x is applied. The price/revenue ratio is 0.46x (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.