LOIRE NEGOCE : revenue, balance sheet and financial ratios

In 2021, LOIRE NEGOCE achieves revenue of 596 k€. Over the period 2016-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +17.4%. Vs 2020, growth of +44% (413 k€ -> 596 k€). After deducting consumption (444 k€), gross margin stands at 151 k€, i.e. a rate of 25%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 95 k€, representing 16.0% of revenue. Warning negative scissor effect: despite revenue change (+44%), EBITDA varies by +13%, reducing margin by 4.5 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 57 k€, i.e. 9.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 62%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 36%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 11.3% 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 1317.95. 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 1.3x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 41 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 4 days. The gap of 37 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 94 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 130 days of revenue, i.e. 215 k€ to permanently finance. Over 2016-2021, WCR increased by +244%, requiring additional financing.

Based on 128 transactions of similar company sales in 2021, the value of LOIRE NEGOCE is estimated at 143 533 € (range 63 957€ - 506 424€). With an EBITDA of 95 386€, the sector multiple of 1.8x is applied. The price/revenue ratio is 0.16x (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.