LES CUIRS FOURNIER : revenue, balance sheet and financial ratios

In 2024, LES CUIRS FOURNIER achieves revenue of 676 k€. Revenue is declining over the period 2016-2024 (CAGR: -7.4%). Significant drop of -23% vs 2023. After deducting consumption (45 k€), gross margin stands at 631 k€, i.e. a rate of 93%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 37 k€, representing 5.5% of revenue. Warning negative scissor effect: despite revenue change (-23%), EBITDA varies by -83%, reducing margin by 20.2 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 38 k€, i.e. 5.6% 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 90%. 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 0.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.4% 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 1134.65. 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 1.8x. 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: 146 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 41 days. The gap of 105 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 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 292 days of revenue, i.e. 549 k€ to permanently finance. Notable WCR improvement over the period (-59%), freeing up cash.

Based on 178 transactions of similar company sales (all years), the value of LES CUIRS FOURNIER is estimated at 64 214 € (range 31 157€ - 150 957€). With an EBITDA of 37 390€, the sector multiple of 0.9x is applied. The price/revenue ratio is 0.15x (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.