B.F.L.M. : revenue, balance sheet and financial ratios

In 2024, B.F.L.M. achieves revenue of 1.6 M€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +14.0%. Slight decline of -4% vs 2023. After deducting consumption (551 k€), gross margin stands at 1.0 M€, i.e. a rate of 65%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 144 k€, representing 9.1% of revenue. Warning negative scissor effect: despite revenue change (-4%), EBITDA varies by -43%, reducing margin by 6.1 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 60 k€, i.e. 3.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 108%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 40%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.5 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 7.3% 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 254.31. 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 8.1x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 46 days. Excellent situation: suppliers finance 46 days of the operating cycle (retail model). Inventory turnover is 38 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 38 days of revenue, i.e. 168 k€ to permanently finance. Over 2015-2024, WCR increased by +5110%, requiring additional financing.

Based on 698 transactions of similar company sales in 2024, the value of B.F.L.M. is estimated at 741 619 € (range 389 792€ - 1 349 326€). With an EBITDA of 143 544€, the sector multiple of 5.4x is applied. The price/revenue ratio is 0.57x (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.