RETAL FRANCE S.A.R.L. : revenue, balance sheet and financial ratios

In 2024, RETAL FRANCE S.A.R.L. achieves revenue of 24.5 M€. Activity remains stable over the period (CAGR: -2.6%). Significant drop of -14% vs 2023. After deducting consumption (16.0 M€), gross margin stands at 8.5 M€, i.e. a rate of 35%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 829 k€, representing 3.4% of revenue. Positive scissor effect: EBITDA margin improves by +7.4 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -314 k€ (-1.3% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 53%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 41%. 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 4.5 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 129.53. 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 19.1x. 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: 51 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 76 days. Favorable situation: supplier credit is longer than customer credit by 25 days. Inventory turnover is 34 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 85 days of revenue, i.e. 5.8 M€ to permanently finance. Notable WCR improvement over the period (-29%), freeing up cash.

Based on 76 transactions of similar company sales (all years), the value of RETAL FRANCE S.A.R.L. is estimated at 2 526 278 € (range 1 155 870€ - 3 972 106€). With an EBITDA of 829 245€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.20x (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.