FRAGONARD PROVENCE : revenue, balance sheet and financial ratios

In 2023, FRAGONARD PROVENCE achieves revenue of 6.2 M€. Over the period 2017-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +18.0%. Vs 2019, growth of +140% (2.6 M€ -> 6.2 M€). After deducting consumption (2.7 M€), gross margin stands at 3.4 M€, i.e. a rate of 56%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 807 k€, representing 13.0% of revenue. Positive scissor effect: EBITDA margin improves by +12.7 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 40 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 2978%. 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 3%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 18.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.6% 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 250.58. 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 33.5x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 42 days. Excellent situation: suppliers finance 42 days of the operating cycle (retail model). Inventory turnover is 35 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 24 days of revenue, i.e. 412 k€ to permanently finance. Over 2017-2023, WCR increased by +55%, requiring additional financing.

Based on 132 transactions of similar company sales (all years), the value of FRAGONARD PROVENCE is estimated at 1 976 311 € (range 1 010 869€ - 3 878 346€). With an EBITDA of 807 351€, 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.