HOTEL FAUBOURG CHAMPS ELYSEES : revenue, balance sheet and financial ratios

In 2024, HOTEL FAUBOURG CHAMPS ELYSEES achieves revenue of 5.4 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.7%. Vs 2023, growth of +15% (4.7 M€ -> 5.4 M€). After deducting consumption (161 k€), gross margin stands at 5.2 M€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 900 k€, representing 16.8% of revenue. Positive scissor effect: EBITDA margin improves by +10.0 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Net income is negative at -69 k€ (-1.3% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 515%. 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 14%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 57.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 30.47. 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 78.0x. 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: 3 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 60 days. Excellent situation: suppliers finance 57 days of the operating cycle (retail model). Inventory turnover is 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-65 days): operations structurally generate cash. Over 2016-2024, WCR increased by +71%, requiring additional financing.

Based on 99 transactions of similar company sales in 2024, the value of HOTEL FAUBOURG CHAMPS ELYSEES is estimated at 3 779 542 € (range 1 171 501€ - 7 132 427€). With an EBITDA of 900 013€, 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.