RUE DES AVEUGLES : revenue, balance sheet and financial ratios

In 2021, RUE DES AVEUGLES achieves revenue of 1.1 M€. Over the period 2018-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +100.7%. Slight decline of -9% vs 2020. After deducting consumption (434 k€), gross margin stands at 661 k€, i.e. a rate of 60%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 564 k€, representing 51.5% of revenue. Positive scissor effect: EBITDA margin improves by +21.1 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 393 k€, i.e. 35.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 680%. 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 12%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.3 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 35.1% 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 817.28. 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 7.8x. 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: 1 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 37 days. Excellent situation: suppliers finance 36 days of the operating cycle (retail model). Inventory turnover is 759 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 726 days of revenue, i.e. 2.2 M€ to permanently finance. Notable WCR improvement over the period (-42%), freeing up cash.

Based on 178 transactions of similar company sales in 2021, the value of RUE DES AVEUGLES is estimated at 2 076 811 € (range 942 097€ - 3 941 970€). With an EBITDA of 563 956€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.70x (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.