LES ATELIERS DE LA TERRE : revenue, balance sheet and financial ratios

In 2017, LES ATELIERS DE LA TERRE achieves revenue of 20 k€. Revenue is growing positively over 4 years (CAGR: +1.7%). Significant drop of -25% vs 2016. After deducting consumption (505 €), gross margin stands at 19 k€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 13 k€, representing 63.3% of revenue. Positive scissor effect: EBITDA margin improves by +10.5 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 11 k€, i.e. 53.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 3%. 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 92%. 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 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 53.8% 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 2058.35. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 167 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 30 days. The gap of 137 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 36 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 212 days of revenue, i.e. 12 k€ to permanently finance. Notable WCR improvement over the period (-38%), freeing up cash.

Based on 104 transactions of similar company sales (all years), the value of LES ATELIERS DE LA TERRE is estimated at 18 211 € (range 6 754€ - 50 477€). With an EBITDA of 12 638€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.24x (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.