LE MEDOC BLEU : revenue, balance sheet and financial ratios

In 2024, LE MEDOC BLEU achieves revenue of 588 k€. After deducting consumption (60 k€), gross margin stands at 528 k€, i.e. a rate of 90%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 118 k€, representing 20.1% of revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Net income is negative at -56 k€ (-9.5% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at -548%. 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 -19%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 23.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 15.9% 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 62.43. 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 22.4x. 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: 7 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 363 days. Excellent situation: suppliers finance 356 days of the operating cycle (retail model). Inventory turnover is 2 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 67 days of revenue, i.e. 109 k€ to permanently finance.

Based on 261 transactions of similar company sales (all years), the value of LE MEDOC BLEU is estimated at 555 444 € (range 340 500€ - 1 062 426€). With an EBITDA of 118 013€, the sector multiple of 5.3x is applied. The price/revenue ratio is 0.75x (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.