AVIGNON GRAND HOTEL SOCIETE NOUVELLE : revenue, balance sheet and financial ratios

In 2024, AVIGNON GRAND HOTEL SOCIETE NOUVELLE achieves revenue of 3.7 M€. Activity remains stable over the period (CAGR: -1.9%). Vs 2023, growth of +12% (3.3 M€ -> 3.7 M€). After deducting consumption (287 k€), gross margin stands at 3.4 M€, i.e. a rate of 92%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 760 k€, representing 20.8% of revenue. Positive scissor effect: EBITDA margin improves by +12.7 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 587 k€, i.e. 16.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 89%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 46%. 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 10.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 6.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 187.08. 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 11.6x. 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: 20 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 39 days. Favorable situation: supplier credit is longer than customer credit by 19 days. Inventory turnover is 3 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-13 days): operations structurally generate cash. Notable WCR improvement over the period (-471%), freeing up cash.

Based on 99 transactions of similar company sales in 2024, the value of AVIGNON GRAND HOTEL SOCIETE NOUVELLE is estimated at 2 891 450 € (range 971 515€ - 5 550 497€). With an EBITDA of 760 403€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.54x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.