FONCIERE FRANCAISE DE LOGEMENT : revenue, balance sheet and financial ratios

In 2016, FONCIERE FRANCAISE DE LOGEMENT achieves revenue of 122 k€. Slight decline of -3% vs 2015. After deducting consumption (2 k€), gross margin stands at 120 k€, i.e. a rate of 98%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 52 k€, representing 42.7% of revenue. Warning negative scissor effect: despite revenue change (-3%), EBITDA varies by -17%, reducing margin by 7.6 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 -170 k€ (-139.3% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 189%. 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 30%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 88.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 13.4% 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 472.30. 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 73.8x. 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: 7 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 756 days. Excellent situation: suppliers finance 749 days of the operating cycle (retail model). Inventory turnover is 1008 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 2939 days of revenue, i.e. 994 k€ to permanently finance.

Based on 1762 transactions of similar company sales (all years), the value of FONCIERE FRANCAISE DE LOGEMENT is estimated at 180 794 € (range 64 409€ - 353 728€). With an EBITDA of 51 968€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.65x (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.