IMMOBILIERE HERRMANN : revenue, balance sheet and financial ratios

In 2022, IMMOBILIERE HERRMANN achieves revenue of 1.0 M€. Revenue is declining over the period 2017-2022 (CAGR: -8.1%). Significant drop of -84% vs 2021. After deducting consumption (176 k€), gross margin stands at 839 k€, i.e. a rate of 83%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 31 k€, representing 3.1% of revenue. Warning negative scissor effect: despite revenue change (-84%), EBITDA varies by -99%, reducing margin by 35.9 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.5 M€, i.e. 150.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 83%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 48%. 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 1.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 150.5% 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 221.35. 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 623.1x. 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: 56 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 7 days. The gap of 49 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 2979 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 10719 days of revenue, i.e. 30.2 M€ to permanently finance. Over 2017-2022, WCR increased by +1055%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (23 transactions). This range of 287 826€ to 3 223 870€ is provided for information purposes only and requires in-depth analysis to be confirmed.