HOTEL SAINT JEAN D'ACRE : revenue, balance sheet and financial ratios

In 2023, HOTEL SAINT JEAN D'ACRE achieves revenue of 2.9 M€. Over the period 2020-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +50.5%. Vs 2022: +3%. After deducting consumption (126 k€), gross margin stands at 2.8 M€, i.e. a rate of 96%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 855 k€, representing 29.3% of revenue. Warning negative scissor effect: despite revenue change (+3%), EBITDA varies by -10%, reducing margin by 4.3 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 432 k€, i.e. 14.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 610%. 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 7.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 24.2% 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 314.52. 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 8.6x. 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: 5 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 65 days. Excellent situation: suppliers finance 60 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. Overall, WCR represents 169 days of revenue, i.e. 1.4 M€ to permanently finance.

Based on 108 transactions of similar company sales in 2023, the value of HOTEL SAINT JEAN D'ACRE is estimated at 2 604 987 € (range 1 050 887€ - 5 853 561€). With an EBITDA of 855 496€, the sector multiple of 3.7x is applied. The price/revenue ratio is 0.74x (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.