GD FRANCE : revenue, balance sheet and financial ratios

In 2023, GD FRANCE achieves revenue of 61.0 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +30.3%. Slight decline of -1% vs 2022. After deducting consumption (46.6 M€), gross margin stands at 14.3 M€, i.e. a rate of 24%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 5.4 M€, representing 8.8% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -36%, reducing margin by 4.9 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 3.6 M€, i.e. 6.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 188%. 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 23%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.9 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 3.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 318.70. 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 30.7x. 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: 38 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 47 days. Favorable situation: supplier credit is longer than customer credit by 9 days. Inventory turnover is 107 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 147 days of revenue, i.e. 24.9 M€ to permanently finance. Over 2016-2023, WCR increased by +517%, requiring additional financing.

Based on 137 transactions of similar company sales (all years), the value of GD FRANCE is estimated at 12 850 372 € (range 6 589 010€ - 27 786 291€). With an EBITDA of 5 350 153€, the sector multiple of 2.9x is applied. The price/revenue ratio is 0.17x (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.