LES ENROBES DU VAL DE SOMME : revenue, balance sheet and financial ratios

In 2024, LES ENROBES DU VAL DE SOMME achieves revenue of 9.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.8%. Significant drop of -13% vs 2023. After deducting consumption (6.5 M€), gross margin stands at 3.1 M€, i.e. a rate of 32%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.3 M€, representing 13.1% of revenue. Warning negative scissor effect: despite revenue change (-13%), EBITDA varies by -28%, reducing margin by 2.6 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 442 k€, i.e. 4.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 264%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 21%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 10.7% 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 219.23. 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 8.4x. 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: 77 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 79 days. Favorable situation: supplier credit is longer than customer credit by 2 days. Inventory turnover is 49 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 163 days of revenue, i.e. 4.4 M€ to permanently finance. Over 2016-2024, WCR increased by +198%, requiring additional financing.

Based on 228 transactions of similar company sales (all years), the value of LES ENROBES DU VAL DE SOMME is estimated at 1 509 761 € (range 603 946€ - 4 017 168€). With an EBITDA of 1 270 037€, the sector multiple of 1.5x is applied. The price/revenue ratio is 0.13x (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.