CIE FINANCIERE DU LITTORAL : revenue, balance sheet and financial ratios

In 2022, CIE FINANCIERE DU LITTORAL achieves revenue of 1.3 M€. Over the period 2016-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +8.4%. Vs 2021: +9%. After deducting consumption (0 €), gross margin stands at 1.3 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 149 k€, representing 11.4% of revenue. Positive scissor effect: EBITDA margin improves by +2.5 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 1.5 M€, i.e. 113.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 87%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 53%. 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 17.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 132.5% 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 3785.93. 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 340.4x. 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: 986 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 0 days. The gap of 986 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 729 days of revenue, i.e. 2.7 M€ to permanently finance. Over 2016-2022, WCR increased by +123%, requiring additional financing.

Based on 142 transactions of similar company sales (all years), the value of CIE FINANCIERE DU LITTORAL is estimated at 3 186 389 € (range 178 886€ - 6 507 942€). With an EBITDA of 149 143€, the sector multiple of 2.6x is applied. The price/revenue ratio is 0.40x (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.