FONCIA CROIX ROUSSE : revenue, balance sheet and financial ratios

In 2024, FONCIA CROIX ROUSSE achieves revenue of 441 k€. Revenue is declining over the period 2018-2024 (CAGR: -29.7%). Slight decline of -1% vs 2023. After deducting consumption (0 €), gross margin stands at 441 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 146 k€, representing 33.1% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -34%, reducing margin by 16.6 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 -74 k€ (-16.8% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 64%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 43%. 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 11.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 11.0% 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 275.99. 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 0.0x. 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: 773 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 375 days. The gap of 398 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 1092 days of revenue, i.e. 1.3 M€ to permanently finance.

Based on 277 transactions of similar company sales (all years), the value of FONCIA CROIX ROUSSE is estimated at 168 148 € (range 64 837€ - 467 863€). With an EBITDA of 145 875€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.29x (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.