CARAFAGNA CONSTRUCTION RENOVATION : revenue, balance sheet and financial ratios

In 2023, CARAFAGNA CONSTRUCTION RENOVATION achieves revenue of 179 k€. Revenue is declining over the period 2021-2023 (CAGR: -31.1%). Significant drop of -13% vs 2022. After deducting consumption (62 k€), gross margin stands at 117 k€, i.e. a rate of 65%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 20 k€, representing 11.1% of revenue. Positive scissor effect: EBITDA margin improves by +8.4 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 17 k€, i.e. 9.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 197%. 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 15%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.3% 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 172.21. 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 7.5x. 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: 215 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 16 days. The gap of 199 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 37 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 143 days of revenue, i.e. 71 k€ to permanently finance. Notable WCR improvement over the period (-43%), freeing up cash.

Indicative estimate only : the number of comparable transactions in this sector is limited (37 transactions). This range of 8 704€ to 54 066€ is provided for information purposes only and requires in-depth analysis to be confirmed.