LES GROIES LORIN : revenue, balance sheet and financial ratios

In 2022, LES GROIES LORIN achieves revenue of 954 k€. Over the period 2017-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +13.9%. Vs 2021, growth of +48% (644 k€ -> 954 k€). After deducting consumption (252 k€), gross margin stands at 702 k€, i.e. a rate of 74%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 68 k€, representing 7.1% of revenue. Warning negative scissor effect: despite revenue change (+48%), EBITDA varies by -16%, reducing margin by 5.4 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 332 k€, i.e. 34.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 9%. 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 70%. 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 2.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.1% 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 286.74. 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 12.9x. 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: 42 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 199 days. Excellent situation: suppliers finance 157 days of the operating cycle (retail model). Inventory turnover is 138 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 499 days of revenue, i.e. 1.3 M€ to permanently finance. Over 2017-2022, WCR increased by +29%, requiring additional financing.

Based on 138 transactions of similar company sales (all years), the value of LES GROIES LORIN is estimated at 393 942 € (range 149 145€ - 905 203€). With an EBITDA of 67 617€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.41x (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.