FIRST LOCATION : revenue, balance sheet and financial ratios

In 2025, FIRST LOCATION achieves revenue of 18.5 M€. Over the period 2017-2025, the company shows strong growth with a CAGR (compound annual growth rate) of +25.1%. Vs 2024, growth of +15% (16.0 M€ -> 18.5 M€). After deducting consumption (303 €), gross margin stands at 18.5 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 1.9 M€, representing 10.4% of revenue. Warning negative scissor effect: despite revenue change (+15%), EBITDA varies by -9%, reducing margin by 2.8 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 847 k€, i.e. 4.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 47%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 33%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.3% 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 166.74. 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 11.6x. 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: 171 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 80 days. The gap of 91 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 203 days of revenue, i.e. 10.4 M€ to permanently finance. Over 2017-2025, WCR increased by +694%, requiring additional financing.

Based on 276 transactions of similar company sales (all years), the value of FIRST LOCATION is estimated at 26 491 353 € (range 5 405 323€ - 38 565 610€). With an EBITDA of 1 922 288€, the sector multiple of 11.9x is applied. The price/revenue ratio is 2.33x (premium 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.