FLANDRES ARTOIS CHARPENTES : revenue, balance sheet and financial ratios

In 2021, FLANDRES ARTOIS CHARPENTES achieves revenue of 955 k€. Over the period 2018-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +56.5%. Vs 2020, growth of +24% (769 k€ -> 955 k€). After deducting consumption (422 k€), gross margin stands at 533 k€, i.e. a rate of 56%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 12 k€, representing 1.2% of revenue. Warning negative scissor effect: despite revenue change (+24%), EBITDA varies by -70%, reducing margin by 3.8 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 7 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 327%. 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 13%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 18.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 218.35. 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 12.1x. 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: 68 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 69 days. Favorable situation: supplier credit is longer than customer credit by 1 days. Inventory turnover is 36 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 116 days of revenue, i.e. 308 k€ to permanently finance. Over 2018-2021, WCR increased by +372%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of FLANDRES ARTOIS CHARPENTES is estimated at 61 210 € (range 36 173€ - 100 284€). With an EBITDA of 11 581€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.16x (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.