LES CHARPENTES DU VALROMEY : revenue, balance sheet and financial ratios

In 2022, LES CHARPENTES DU VALROMEY achieves revenue of 295 k€. Over the period 2016-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +5.9%. Slight decline of -8% vs 2021. After deducting consumption (97 k€), gross margin stands at 199 k€, i.e. a rate of 67%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 31 k€, representing 10.5% of revenue. Warning negative scissor effect: despite revenue change (-8%), EBITDA varies by -25%, reducing margin by 2.3 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2 k€, i.e. 0.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 92%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 43%. 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 3.7 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 9.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 479.71. 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 7.9x. 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: 43 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 28 days. The company must finance 15 days of gap between collections and payments. Inventory turnover is 84 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 110 days of revenue, i.e. 91 k€ to permanently finance. Over 2016-2022, WCR increased by +4347%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of LES CHARPENTES DU VALROMEY is estimated at 49 489 € (range 23 781€ - 80 016€). With an EBITDA of 30 912€, the sector multiple of 2.2x 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.