NEGOCE ET LOCATION DE NORMANDIE : revenue, balance sheet and financial ratios

In 2025, NEGOCE ET LOCATION DE NORMANDIE achieves revenue of 759 k€. Over the period 2018-2025, the company shows strong growth with a CAGR (compound annual growth rate) of +23.8%. Slight decline of -1% vs 2024. After deducting consumption (171 k€), gross margin stands at 588 k€, i.e. a rate of 77%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 80 k€, representing 10.5% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -35%, reducing margin by 5.6 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 14 k€, i.e. 1.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 129%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 31%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 9.7% 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 219.65. 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 4.3x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 96 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 80 days. The company must finance 16 days of gap between collections and payments. Inventory turnover is 135 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 213 days of revenue, i.e. 450 k€ to permanently finance. Over 2018-2025, WCR increased by +119%, requiring additional financing.

Based on 113 transactions of similar company sales in 2025, the value of NEGOCE ET LOCATION DE NORMANDIE is estimated at 87 837 € (range 41 521€ - 194 841€). With an EBITDA of 79 608€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (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.