FRAGONARD LES FLEURS : revenue, balance sheet and financial ratios

In 2023, FRAGONARD LES FLEURS achieves revenue of 6.0 M€. Revenue is growing positively over 5 years (CAGR: +4.4%). Vs 2019, growth of +24% (4.8 M€ -> 6.0 M€). After deducting consumption (2.0 M€), gross margin stands at 4.0 M€, i.e. a rate of 66%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 713 k€, representing 11.9% of revenue. Positive scissor effect: EBITDA margin improves by +28.1 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 287 k€, i.e. 4.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 27%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 61%. 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 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 9.7% 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 232.25. 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 5.3x. 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: 8 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 12 days. Favorable situation: supplier credit is longer than customer credit by 4 days. Inventory turnover is 20 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 9 days of revenue, i.e. 152 k€ to permanently finance. Notable WCR improvement over the period (-36%), freeing up cash.

Based on 132 transactions of similar company sales (all years), the value of FRAGONARD LES FLEURS is estimated at 2 015 666 € (range 1 027 045€ - 3 950 723€). With an EBITDA of 713 006€, the sector multiple of 3.2x is applied. The price/revenue ratio is 0.35x (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.