LES DUNES DU MENHIR : revenue, balance sheet and financial ratios

In 2023, LES DUNES DU MENHIR achieves revenue of 9 k€. Revenue is declining over the period 2021-2023 (CAGR: -80.6%). Significant drop of -97% vs 2022. After deducting consumption (5 k€), gross margin stands at 4 k€, i.e. a rate of 45%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 3 k€, representing 37.7% of revenue. Positive scissor effect: EBITDA margin improves by +48.6 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 898 €, i.e. 10.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -444%. 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 -28%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 195.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 10.0% 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 3791.26. 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 73.5x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 250 days. Excellent situation: suppliers finance 250 days of the operating cycle (retail model). Inventory turnover is 5433 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 5488 days of revenue, i.e. 137 k€ to permanently finance. Over 2021-2023, WCR increased by +8185%, requiring additional financing.

Based on 215 transactions of similar company sales in 2023, the value of LES DUNES DU MENHIR is estimated at 11 145 € (range 3 220€ - 19 182€). With an EBITDA of 3 395€, the sector multiple of 5.2x is applied. The price/revenue ratio is 0.51x (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.