LES MOTELS DE NORMANDIE : revenue, balance sheet and financial ratios

In 2023, LES MOTELS DE NORMANDIE achieves revenue of 4.5 M€. Revenue is growing positively over 8 years (CAGR: +4.5%). Vs 2022: +5%. After deducting consumption (583 k€), gross margin stands at 3.9 M€, i.e. a rate of 87%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 33 k€, representing 0.7% of revenue. Warning negative scissor effect: despite revenue change (+5%), EBITDA varies by -91%, reducing margin by 8.0 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -268 k€ (-6.0% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 37%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 60%. 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 11.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 298.96. 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 92.6x. 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: 12 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 56 days. Excellent situation: suppliers finance 44 days of the operating cycle (retail model). Inventory turnover is 8 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 117 days of revenue, i.e. 1.4 M€ to permanently finance. Over 2016-2023, WCR increased by +245%, requiring additional financing.

Based on 108 transactions of similar company sales in 2023, the value of LES MOTELS DE NORMANDIE is estimated at 1 317 017 € (range 432 767€ - 2 506 929€). With an EBITDA of 32 609€, the sector multiple of 3.7x is applied. The price/revenue ratio is 0.74x (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.