LA GERBE SAVOYARDE : revenue, balance sheet and financial ratios

In 2024, LA GERBE SAVOYARDE achieves revenue of 39.1 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.2%. Vs 2023: +5%. After deducting consumption (25.7 M€), gross margin stands at 13.4 M€, i.e. a rate of 34%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.5 M€, representing 6.3% of revenue. Positive scissor effect: EBITDA margin improves by +2.6 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 412 k€, i.e. 1.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 171%. 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 25%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 198.46. 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 7.8x. 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: 38 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 63 days. Favorable situation: supplier credit is longer than customer credit by 25 days. Inventory turnover is 55 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 93 days of revenue, i.e. 10.2 M€ to permanently finance. Over 2016-2024, WCR increased by +207%, requiring additional financing.

Based on 203 transactions of similar company sales in 2024, the value of LA GERBE SAVOYARDE is estimated at 15 480 743 € (range 8 832 002€ - 23 216 809€). With an EBITDA of 2 450 544€, the sector multiple of 6.7x is applied. The price/revenue ratio is 0.55x (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.