HOTELS MAURICE HURAND : revenue, balance sheet and financial ratios

In 2024, HOTELS MAURICE HURAND achieves revenue of 3.2 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.1%. Vs 2023, growth of +20% (2.7 M€ -> 3.2 M€). After deducting consumption (60 k€), gross margin stands at 3.1 M€, i.e. a rate of 98%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 173 k€, representing 5.4% of revenue. Positive scissor effect: EBITDA margin improves by +88.1 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.1 M€, i.e. 64.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 91%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 51%. 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 12.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 94.2% 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 512.26. 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 1389.2x. 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: 20 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 87 days. Excellent situation: suppliers finance 67 days of the operating cycle (retail model). Inventory turnover is 12 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 447 days of revenue, i.e. 4.0 M€ to permanently finance. Notable WCR improvement over the period (-24%), freeing up cash.

Based on 103 transactions of similar company sales in 2024, the value of HOTELS MAURICE HURAND is estimated at 4 746 891 € (range 1 604 026€ - 12 086 727€). With an EBITDA of 172 506€, the sector multiple of 5.0x is applied. The price/revenue ratio is 0.38x (conservative 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.