HOSTELLERIE LA FARANDOLE : revenue, balance sheet and financial ratios

In 2024, HOSTELLERIE LA FARANDOLE achieves revenue of 4.8 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.1%. Vs 2023: +1%. After deducting consumption (595 k€), gross margin stands at 4.2 M€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 505 k€, representing 10.6% of revenue. Positive scissor effect: EBITDA margin improves by +6.4 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 300 k€, i.e. 6.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -123%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches -6%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.8% 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 98.15. 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 3.9x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 6 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 370 days. Excellent situation: suppliers finance 364 days of the operating cycle (retail model). Inventory turnover is 13 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 209 days of revenue, i.e. 2.8 M€ to permanently finance. Over 2016-2024, WCR increased by +129%, requiring additional financing.

Based on 99 transactions of similar company sales in 2024, the value of HOSTELLERIE LA FARANDOLE is estimated at 2 229 893 € (range 797 491€ - 4 402 597€). With an EBITDA of 504 746€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.54x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.