FIREF (FRANCE) N 2 : revenue, balance sheet and financial ratios

In 2024, FIREF (FRANCE) N 2 achieves revenue of 1.7 M€. Revenue is growing positively over 10 years (CAGR: +1.1%). Significant drop of -12% vs 2023. After deducting consumption (0 €), gross margin stands at 1.7 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 912 k€, representing 55.1% of revenue. Warning negative scissor effect: despite revenue change (-12%), EBITDA varies by -30%, reducing margin by 14.0 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Net income is negative at -34 k€ (-2.1% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 254%. 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 28%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 15.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 35.8% 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 792.53. 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 47.1x. 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: 86 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 17 days. The gap of 69 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 55 days of revenue, i.e. 252 k€ to permanently finance. Over 2017-2024, WCR increased by +12278%, requiring additional financing.

Based on 169 transactions of similar company sales in 2024, the value of FIREF (FRANCE) N 2 is estimated at 3 691 138 € (range 1 035 801€ - 6 628 181€). With an EBITDA of 911 732€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.81x (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.