MONNIN FIRE SAFETY SARL : revenue, balance sheet and financial ratios

In 2021, MONNIN FIRE SAFETY SARL achieves revenue of 60 k€. Over the period 2017-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +21.8%. Vs 2020, growth of +54% (39 k€ -> 60 k€). After deducting consumption (13 k€), gross margin stands at 46 k€, i.e. a rate of 78%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 338 €, representing 0.6% of revenue. Positive scissor effect: EBITDA margin improves by +2.1 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 306 €, i.e. 0.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 26%. 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 12%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 194.37. 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 16.0x. 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: 266 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 145 days. The gap of 121 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 105 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 201 days of revenue, i.e. 33 k€ to permanently finance. Over 2017-2021, WCR increased by +23%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (38 transactions). This range of 2 052€ to 5 380€ is provided for information purposes only and requires in-depth analysis to be confirmed.