LES GRENETTES : revenue, balance sheet and financial ratios

In 2024, LES GRENETTES achieves revenue of 4.0 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.0%. Significant drop of -18% vs 2023. After deducting consumption (632 k€), gross margin stands at 3.4 M€, i.e. a rate of 84%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 464 k€, representing 11.5% of revenue. Positive scissor effect: EBITDA margin improves by +2.8 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Net income is negative at -794 k€ (-19.6% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 168%. 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 33%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 48.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 40.98. 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 44.2x. 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: 14 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 132 days. Excellent situation: suppliers finance 118 days of the operating cycle (retail model). Inventory turnover is 10 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 10 days of revenue, i.e. 116 k€ to permanently finance. Over 2016-2024, WCR increased by +125%, requiring additional financing.

Based on 153 transactions of similar company sales (all years), the value of LES GRENETTES is estimated at 4 522 254 € (range 2 645 785€ - 6 381 204€). With an EBITDA of 464 019€, the sector multiple of 7.1x is applied. The price/revenue ratio is 1.61x (premium 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.