HOTEL DES FRANCS BOURGEOIS : revenue, balance sheet and financial ratios

In 2024, HOTEL DES FRANCS BOURGEOIS achieves revenue of 919 k€. Revenue is growing positively over 6 years (CAGR: +1.2%). Significant drop of -50% vs 2023. After deducting consumption (26 k€), gross margin stands at 893 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 102 k€, representing 11.1% of revenue. Warning negative scissor effect: despite revenue change (-50%), EBITDA varies by -78%, reducing margin by 13.6 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 81 k€, i.e. 8.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 44%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 58%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 9.7% 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 160.83. 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 0.5x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 4 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 24 days. Favorable situation: supplier credit is longer than customer credit by 20 days. Overall, WCR represents 35 days of revenue, i.e. 91 k€ to permanently finance. Over 2017-2024, WCR increased by +3066%, requiring additional financing.

Based on 99 transactions of similar company sales in 2024, the value of HOTEL DES FRANCS BOURGEOIS is estimated at 458 787 € (range 165 854€ - 907 395€). With an EBITDA of 101 662€, 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.