GF RENT : revenue, balance sheet and financial ratios

In 2024, GF RENT achieves revenue of 2.0 M€. Revenue is declining over the period 2020-2024 (CAGR: -9.0%). Significant drop of -18% vs 2023. After deducting consumption (1.5 M€), gross margin stands at 528 k€, i.e. a rate of 27%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 293 k€, representing 14.8% of revenue. Warning negative scissor effect: despite revenue change (-18%), EBITDA varies by -44%, reducing margin by 6.9 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 8 k€, i.e. 0.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 504%. 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 13%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 10.5% 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 151.70. 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 29.0x. 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: 34 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 117 days. Excellent situation: suppliers finance 83 days of the operating cycle (retail model). Inventory turnover is 83 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 135 days of revenue, i.e. 743 k€ to permanently finance.

Based on 276 transactions of similar company sales (all years), the value of GF RENT is estimated at 3 159 664 € (range 680 878€ - 4 246 269€). With an EBITDA of 293 246€, the sector multiple of 11.9x is applied. The price/revenue ratio is 2.33x (premium 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.