EDITIONS LES ARENES : revenue, balance sheet and financial ratios

In 2024, EDITIONS LES ARENES achieves revenue of 17.1 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.5%. Vs 2023: +8%. After deducting consumption (-226 k€), gross margin stands at 17.3 M€, i.e. a rate of 101%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 6.3 M€, representing 36.7% of revenue. Positive scissor effect: EBITDA margin improves by +3.1 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 692 k€, i.e. 4.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 4%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 49%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 176.83. 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 0.3x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 154 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 316 days. Excellent situation: suppliers finance 162 days of the operating cycle (retail model). Inventory turnover is 90 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 315 days of revenue, i.e. 15.0 M€ to permanently finance. Over 2017-2024, WCR increased by +54%, requiring additional financing.

Based on 104 transactions of similar company sales (all years), the value of EDITIONS LES ARENES is estimated at 5 464 495 € (range 2 621 518€ - 18 286 330€). With an EBITDA of 6 272 204€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.24x (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.