NFD DISTRIBUTION : revenue, balance sheet and financial ratios

In 2022, NFD DISTRIBUTION achieves revenue of 1.1 M€. Over the period 2016-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +14.6%. Vs 2021, growth of +12% (1.0 M€ -> 1.1 M€). After deducting consumption (662 k€), gross margin stands at 456 k€, i.e. a rate of 41%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 103 k€, representing 9.2% of revenue. Warning negative scissor effect: despite revenue change (+12%), EBITDA varies by -45%, reducing margin by 9.3 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 73 k€, i.e. 6.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 9%. 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 76%. 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 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.5% 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 505.90. 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 0.4x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 42 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 37 days. The company must finance 5 days of gap between collections and payments. Inventory turnover is 21 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 81 days of revenue, i.e. 251 k€ to permanently finance. Over 2016-2022, WCR increased by +205%, requiring additional financing.

Based on 109 transactions of similar company sales in 2022, the value of NFD DISTRIBUTION is estimated at 296 775 € (range 180 988€ - 561 333€). With an EBITDA of 102 545€, the sector multiple of 1.8x is applied. The price/revenue ratio is 0.48x (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.