LA FONCIERE DES MASCAREIGNES : revenue, balance sheet and financial ratios

In 2024, LA FONCIERE DES MASCAREIGNES achieves revenue of 2.3 M€. Over the period 2018-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +134.9%. Vs 2023, growth of +3304% (67 k€ -> 2.3 M€). After deducting consumption (0 €), gross margin stands at 2.3 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 971 k€, representing 42.8% of revenue. Positive scissor effect: EBITDA margin improves by +127.6 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 552 k€, i.e. 24.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 317%. 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 24%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 26.8% 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 2108.95. 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 19.7x. 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: 67 days. Excellent situation: suppliers finance 62 days of the operating cycle (retail model). Inventory turnover is 283 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 306 days of revenue, i.e. 1.9 M€ to permanently finance. Over 2018-2024, WCR increased by +165%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of LA FONCIERE DES MASCAREIGNES is estimated at 3 748 943 € (range 903 226€ - 7 385 287€). With an EBITDA of 971 040€, 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.