L'ATELIER D'EDITION : revenue, balance sheet and financial ratios

In 2024, L'ATELIER D'EDITION achieves revenue of 229 k€. Activity remains stable over the period (CAGR: -2.5%). Significant drop of -28% vs 2023. After deducting consumption (181 €), gross margin stands at 229 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 14 k€, representing 5.9% of revenue. Warning negative scissor effect: despite revenue change (-28%), EBITDA varies by -80%, reducing margin by 15.6 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 k€, i.e. 0.5% 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 33%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 15.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 292.48. 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 9.0x. 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: 65 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 158 days. Excellent situation: suppliers finance 93 days of the operating cycle (retail model). Inventory turnover is 639 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 473 days of revenue, i.e. 302 k€ to permanently finance. Over 2016-2024, WCR increased by +41%, requiring additional financing.

Based on 67 transactions of similar company sales (all years), the value of L'ATELIER D'EDITION is estimated at 19 808 € (range 12 050€ - 74 868€). With an EBITDA of 13 560€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.16x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.