D3 NORMANDY : revenue, balance sheet and financial ratios

In 2024, D3 NORMANDY achieves revenue of 4.1 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +13.1%. Significant drop of -26% vs 2023. After deducting consumption (3.4 M€), gross margin stands at 691 k€, i.e. a rate of 17%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 89 k€, representing 2.2% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 48 k€, i.e. 1.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 120%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 21%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 11.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 169.07. 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 53.1x. 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: 10 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 126 days. Excellent situation: suppliers finance 116 days of the operating cycle (retail model). Inventory turnover is 190 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 254 days of revenue, i.e. 2.9 M€ to permanently finance. Over 2016-2024, WCR increased by +375%, requiring additional financing.

Based on 147 transactions of similar company sales in 2024, the value of D3 NORMANDY is estimated at 719 723 € (range 394 000€ - 1 305 752€). With an EBITDA of 89 367€, the sector multiple of 5.5x is applied. The price/revenue ratio is 0.35x (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.