L'ARCHE : revenue, balance sheet and financial ratios

In 2024, L'ARCHE achieves revenue of 7.8 M€. Revenue is growing positively over 9 years (CAGR: +4.2%). Slight decline of -9% vs 2023. After deducting consumption (2.2 M€), gross margin stands at 5.6 M€, i.e. a rate of 72%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.3 M€, representing 16.6% of revenue. Warning negative scissor effect: despite revenue change (-9%), EBITDA varies by -33%, reducing margin by 5.9 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 509 k€, i.e. 6.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 20%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 79%. 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 1.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 15.3% 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 1022.01. 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 2.6x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 24 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 38 days. Favorable situation: supplier credit is longer than customer credit by 14 days. Inventory turnover is 49 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 105 days of revenue, i.e. 2.3 M€ to permanently finance. Over 2016-2024, WCR increased by +208%, requiring additional financing.

Based on 138 transactions of similar company sales (all years), the value of L'ARCHE is estimated at 3 375 391 € (range 1 154 918€ - 5 669 350€). With an EBITDA of 1 292 224€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.41x (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.