ETABLISSEMENT LAVILLAUROY : revenue, balance sheet and financial ratios

In 2024, ETABLISSEMENT LAVILLAUROY achieves revenue of 78.6 M€. Revenue is growing positively over 9 years (CAGR: +3.9%). Slight decline of -3% vs 2023. After deducting consumption (68.5 M€), gross margin stands at 10.2 M€, i.e. a rate of 13%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.4 M€, representing 1.8% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 563 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 206%. 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 20%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 16.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 229.20. 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 28.9x. 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: 21 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 37 days. Favorable situation: supplier credit is longer than customer credit by 16 days. Inventory turnover is 79 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 95 days of revenue, i.e. 20.7 M€ to permanently finance. Over 2016-2024, WCR increased by +70%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of ETABLISSEMENT LAVILLAUROY is estimated at 5 236 222 € (range 2 317 636€ - 9 334 000€). With an EBITDA of 1 437 989€, the sector multiple of 1.6x is applied. The price/revenue ratio is 0.16x (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.