LE BARON DES ANDEOLS : revenue, balance sheet and financial ratios

In 2021, LE BARON DES ANDEOLS achieves revenue of 300 k€. Revenue is declining over the period 2017-2021 (CAGR: -10.1%). Significant drop of -35% vs 2020. After deducting consumption (0 €), gross margin stands at 300 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 232 k€, representing 77.2% of revenue. Warning negative scissor effect: despite revenue change (-35%), EBITDA varies by -38%, reducing margin by 3.5 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 225 k€, i.e. 75.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 9%. 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 0.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 156.9% 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 525.46. 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 1.7x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 3590 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 773 days. The gap of 2817 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 3824 days of revenue, i.e. 3.2 M€ to permanently finance.

Based on 178 transactions of similar company sales in 2021, the value of LE BARON DES ANDEOLS is estimated at 905 419 € (range 410 774€ - 1 719 733€). With an EBITDA of 231 676€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.70x (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.