LES GOUTS DU SUD SAS : revenue, balance sheet and financial ratios

In 2024, LES GOUTS DU SUD SAS achieves revenue of 14.5 M€. Over the period 2014-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.6%. Vs 2023, growth of +17% (12.5 M€ -> 14.5 M€). After deducting consumption (8.3 M€), gross margin stands at 6.2 M€, i.e. a rate of 43%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 590 k€, representing 4.1% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 225 k€, i.e. 1.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 32%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 49%. 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 2.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 128.00. 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 8.6x. 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: 29 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 62 days. Excellent situation: suppliers finance 33 days of the operating cycle (retail model). Inventory turnover is 19 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 55 days of revenue, i.e. 2.2 M€ to permanently finance. Over 2014-2024, WCR increased by +78%, requiring additional financing.

Based on 108 transactions of similar company sales (all years), the value of LES GOUTS DU SUD SAS is estimated at 2 391 613 € (range 1 312 853€ - 4 857 568€). With an EBITDA of 589 969€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.26x (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.