LUMIERES DU GRAND AVIGNON : revenue, balance sheet and financial ratios

In 2024, LUMIERES DU GRAND AVIGNON achieves revenue of 3.6 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.3%. Vs 2023, growth of +102% (1.8 M€ -> 3.6 M€). After deducting consumption (0 €), gross margin stands at 3.6 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.1 M€, representing 30.2% of revenue. Warning negative scissor effect: despite revenue change (+102%), EBITDA varies by -1%, reducing margin by 31.5 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 56 k€, i.e. 1.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 648%. 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 7%. Low autonomy: the company heavily depends on external financing (banks, suppliers). 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 25.3% 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 116.27. 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 15.1x. 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: 38 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 254 days. Excellent situation: suppliers finance 216 days of the operating cycle (retail model). Inventory turnover is 56 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 150 days of revenue, i.e. 1.5 M€ to permanently finance. Over 2017-2024, WCR increased by +34%, requiring additional financing.

Based on 98 transactions of similar company sales (all years), the value of LUMIERES DU GRAND AVIGNON is estimated at 2 316 615 € (range 605 520€ - 3 820 700€). With an EBITDA of 1 080 541€, the sector multiple of 3.5x is applied. The price/revenue ratio is 0.36x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.