BERNARD RICHARDS MANUFACTURE BRM : revenue, balance sheet and financial ratios

In 2024, BERNARD RICHARDS MANUFACTURE BRM achieves revenue of 3.9 M€. Revenue is growing positively over 9 years (CAGR: +1.0%). Slight decline of -6% vs 2023. After deducting consumption (937 k€), gross margin stands at 2.9 M€, i.e. a rate of 76%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 546 k€, representing 14.1% of revenue. Warning negative scissor effect: despite revenue change (-6%), EBITDA varies by -24%, reducing margin by 3.3 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 246 k€, i.e. 6.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2%. 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 79%. 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 5.3% 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 513.24. 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: 115 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 59 days. The gap of 56 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 59 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 155 days of revenue, i.e. 1.7 M€ to permanently finance. Notable WCR improvement over the period (-32%), freeing up cash.

Based on 101 transactions of similar company sales (all years), the value of BERNARD RICHARDS MANUFACTURE BRM is estimated at 1 105 194 € (range 361 975€ - 2 059 514€). With an EBITDA of 546 435€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.24x (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.