FERME DE FEROLLES : revenue, balance sheet and financial ratios

In 2023, FERME DE FEROLLES achieves revenue of 262 k€. Over the period 2017-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +11.1%. Slight decline of -4% vs 2022. After deducting consumption (133 k€), gross margin stands at 129 k€, i.e. a rate of 49%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 37 k€, representing 14.0% of revenue. Warning negative scissor effect: despite revenue change (-4%), EBITDA varies by -26%, reducing margin by 4.0 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 27 k€, i.e. 10.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 16%. 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 13%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 14.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 528.06. 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 0.4x. 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: 36 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 18 days. The company must finance 18 days of gap between collections and payments. Inventory turnover is 164 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 232 days of revenue, i.e. 169 k€ to permanently finance. Over 2017-2023, WCR increased by +1532%, requiring additional financing.

Based on 94 transactions of similar company sales (all years), the value of FERME DE FEROLLES is estimated at 28 425 € (range 16 409€ - 71 776€). With an EBITDA of 36 756€, the sector multiple of 0.5x is applied. The price/revenue ratio is 0.15x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.