RICHARD WOLF FRANCE : revenue, balance sheet and financial ratios

In 2024, RICHARD WOLF FRANCE achieves revenue of 12.4 M€. Revenue is growing positively over 9 years (CAGR: +4.7%). Vs 2023: +3%. After deducting consumption (5.8 M€), gross margin stands at 6.6 M€, i.e. a rate of 53%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 271 k€, representing 2.2% 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 29 k€, i.e. 0.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 507%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 2%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 87.02. 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 7.4x. 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: 95 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 266 days. Excellent situation: suppliers finance 171 days of the operating cycle (retail model). Inventory turnover is 60 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 136 days of revenue, i.e. 4.7 M€ to permanently finance. Over 2016-2024, WCR increased by +70%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of RICHARD WOLF FRANCE is estimated at 894 664 € (range 477 760€ - 2 771 118€). With an EBITDA of 270 894€, 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.