CORTONA FELIX FAURE : revenue, balance sheet and financial ratios

In 2024, CORTONA FELIX FAURE achieves revenue of 4.9 M€. Over the period 2022-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +130.6%. Vs 2023, growth of +331% (1.1 M€ -> 4.9 M€). After deducting consumption (1.2 M€), gross margin stands at 3.8 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 1.9 M€, representing 39.0% of revenue. Positive scissor effect: EBITDA margin improves by +53.9 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 937 k€, i.e. 19.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 303695%. 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 0%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 22.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 17.9% 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 3423.76. 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 55.2x. 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: 16 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 22 days. Favorable situation: supplier credit is longer than customer credit by 6 days. Inventory turnover is 1428 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1437 days of revenue, i.e. 19.7 M€ to permanently finance. Over 2022-2024, WCR increased by +46%, requiring additional financing.

Based on 169 transactions of similar company sales in 2024, the value of CORTONA FELIX FAURE is estimated at 7 850 014 € (range 2 263 833€ - 14 144 123€). With an EBITDA of 1 921 932€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.81x (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.