ARROW FRANCE LILLE SNC : revenue, balance sheet and financial ratios

In 2024, ARROW FRANCE LILLE SNC achieves revenue of 1.8 M€. Revenue is growing positively over 9 years (CAGR: +0.4%). Vs 2023: +5%. After deducting consumption (0 €), gross margin stands at 1.8 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.4 M€, representing 74.0% of revenue. Warning negative scissor effect: despite revenue change (+5%), EBITDA varies by +1%, reducing margin by 3.2 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 590 k€, i.e. 32.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 977%. 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 9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 11.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 53.6% 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 2634.71. 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 48.9x. 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: 92 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 69 days. The company must finance 23 days of gap between collections and payments. Overall, WCR represents 1251 days of revenue, i.e. 6.4 M€ to permanently finance. Over 2016-2024, WCR increased by +710%, requiring additional financing.

Based on 277 transactions of similar company sales (all years), the value of ARROW FRANCE LILLE SNC is estimated at 1 325 095 € (range 449 728€ - 3 882 501€). With an EBITDA of 1 363 037€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.29x (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.