EURL FLORENCE PRIOR : revenue, balance sheet and financial ratios

In 2024, EURL FLORENCE PRIOR achieves revenue of 140 k€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +27.8%. Slight decline of -8% vs 2023. After deducting consumption (-9 k€), gross margin stands at 150 k€, i.e. a rate of 107%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 13 k€, representing 9.4% of revenue. Positive scissor effect: EBITDA margin improves by +2.9 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 8 k€, i.e. 5.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 126%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 41%. 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 6.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 9.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 298.06. 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: 30 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 0 days. The company must finance 30 days of gap between collections and payments. Inventory turnover is 181 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 140 days of revenue, i.e. 55 k€ to permanently finance. Over 2016-2024, WCR increased by +544%, requiring additional financing.

Based on 117 transactions of similar company sales in 2024, the value of EURL FLORENCE PRIOR is estimated at 52 199 € (range 32 459€ - 94 095€). With an EBITDA of 13 169€, the sector multiple of 4.0x is applied. The price/revenue ratio is 0.53x (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.