FREDALEX SARL : revenue, balance sheet and financial ratios

In 2024, FREDALEX SARL achieves revenue of 300 k€. Revenue is growing positively over 8 years (CAGR: +4.5%). Vs 2023, growth of +41% (213 k€ -> 300 k€). After deducting consumption (9 k€), gross margin stands at 291 k€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 128 k€, representing 42.6% of revenue. Positive scissor effect: EBITDA margin improves by +22.7 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 111 k€, i.e. 37.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 329%. 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 17%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 37.7% 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 289.06. 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 7.9x. 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: 269 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 184 days. The gap of 85 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 382 days of revenue, i.e. 318 k€ to permanently finance. Over 2016-2024, WCR increased by +911%, requiring additional financing.

Based on 116 transactions of similar company sales (all years), the value of FREDALEX SARL is estimated at 437 836 € (range 242 749€ - 850 370€). With an EBITDA of 127 535€, the sector multiple of 4.6x is applied. The price/revenue ratio is 0.61x (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.