INVEST HOTEL DIJON NORD POUILLY : revenue, balance sheet and financial ratios

In 2022, INVEST HOTEL DIJON NORD POUILLY achieves revenue of 1.2 M€. Revenue is growing positively over 5 years (CAGR: +0.4%). Vs 2020, growth of +91% (632 k€ -> 1.2 M€). After deducting consumption (113 k€), gross margin stands at 1.1 M€, i.e. a rate of 91%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 286 k€, representing 23.7% of revenue. Positive scissor effect: EBITDA margin improves by +11.4 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 78 k€, i.e. 6.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 863%. 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 9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 16.6% 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 189.95. 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 5.1x. 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: 2 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. Excellent situation: suppliers finance 52 days of the operating cycle (retail model). Inventory turnover is 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-17 days): operations structurally generate cash. Notable WCR improvement over the period (-213%), freeing up cash.

Based on 164 transactions of similar company sales in 2022, the value of INVEST HOTEL DIJON NORD POUILLY is estimated at 1 089 208 € (range 451 726€ - 1 971 862€). With an EBITDA of 286 120€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.96x (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.