FERMES FRANCAISES : revenue, balance sheet and financial ratios

In 2022, FERMES FRANCAISES achieves revenue of 3.7 M€. Over the period 2017-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +16.4%. Vs 2021, growth of +52% (2.4 M€ -> 3.7 M€). After deducting consumption (2.5 M€), gross margin stands at 1.2 M€, i.e. a rate of 32%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 718 k€, representing 19.6% of revenue. Warning negative scissor effect: despite revenue change (+52%), EBITDA varies by -4%, reducing margin by 11.6 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 99 k€, i.e. 2.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 108%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 44%. 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 9.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 17.5% 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 295.62. 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: 21 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 103 days. Excellent situation: suppliers finance 82 days of the operating cycle (retail model). Inventory turnover is 151 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 213 days of revenue, i.e. 2.2 M€ to permanently finance.

Based on 241 transactions of similar company sales in 2022, the value of FERMES FRANCAISES is estimated at 1 995 363 € (range 846 417€ - 4 901 804€). With an EBITDA of 718 022€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.68x (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.