FRANCOIS & SUZON MAISON ENFANT : revenue, balance sheet and financial ratios

In 2023, FRANCOIS & SUZON MAISON ENFANT achieves revenue of 53 k€. Over the period 2019-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +10.4%. Vs 2020, growth of +47% (36 k€ -> 53 k€). After deducting consumption (0 €), gross margin stands at 53 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 45 k€, representing 85.7% of revenue. Positive scissor effect: EBITDA margin improves by +7.3 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1 k€, i.e. 2.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 277%. 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 24%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 79.0% 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 161.00. 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 7.8x. 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: 289 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 152 days. The gap of 137 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 123 days of revenue, i.e. 18 k€ to permanently finance. Notable WCR improvement over the period (-32%), freeing up cash.

Based on 215 transactions of similar company sales in 2023, the value of FRANCOIS & SUZON MAISON ENFANT is estimated at 125 895 € (range 33 708€ - 208 196€). With an EBITDA of 45 250€, the sector multiple of 5.2x is applied. The price/revenue ratio is 0.51x (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.