FAVREAU COUTHOUIS : revenue, balance sheet and financial ratios

In 2025, FAVREAU COUTHOUIS achieves revenue of 46.5 M€. Over the period 2017-2025, the company shows strong growth with a CAGR (compound annual growth rate) of +10.9%. Significant drop of -36% vs 2022. After deducting consumption (35.6 M€), gross margin stands at 10.9 M€, i.e. a rate of 24%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.9 M€, representing 6.2% of revenue. Warning negative scissor effect: despite revenue change (-36%), EBITDA varies by -53%, reducing margin by 2.2 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.9 M€, i.e. 4.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 6%. 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 70%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Cash flow represents 4.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 293.70. 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 1.9x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 23 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 22 days. The company must finance 1 days of gap between collections and payments. Inventory turnover is 115 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 103 days of revenue, i.e. 13.2 M€ to permanently finance. Over 2017-2025, WCR increased by +319%, requiring additional financing.

Based on 164 transactions of similar company sales (all years), the value of FAVREAU COUTHOUIS is estimated at 9 696 747 € (range 4 319 042€ - 21 074 855€). With an EBITDA of 2 860 089€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.26x (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.