NORMANDIE PROMOTION : revenue, balance sheet and financial ratios

In 2019, NORMANDIE PROMOTION achieves revenue of 2.7 M€. Over the period 2016-2019, the company shows strong growth with a CAGR (compound annual growth rate) of +1242.8%. Vs 2018, growth of +81854% (3 k€ -> 2.7 M€). After deducting consumption (-499 k€), gross margin stands at 3.2 M€, i.e. a rate of 118%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 321 k€, representing 11.8% of revenue. Warning negative scissor effect: despite revenue change (+81854%), EBITDA varies by +1774%, reducing margin by 505.0 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 705 k€, i.e. 25.9% 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 64%. 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 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 25.9% 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 328.88. 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 3.2x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 29 days. Favorable situation: supplier credit is longer than customer credit by 29 days. Overall, WCR represents 5 days of revenue, i.e. 36 k€ to permanently finance. Notable WCR improvement over the period (-95%), freeing up cash.

Based on 234 transactions of similar company sales in 2019, the value of NORMANDIE PROMOTION is estimated at 2 340 450 € (range 888 618€ - 4 456 068€). With an EBITDA of 321 309€, the sector multiple of 5.5x is applied. The price/revenue ratio is 0.69x (in line with sector norms). 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.