SARL LA MADELEINE : revenue, balance sheet and financial ratios

In 2022, SARL LA MADELEINE achieves revenue of 795 k€. Activity remains stable over the period (CAGR: -4.8%). Significant drop of -32% vs 2021. After deducting consumption (97 k€), gross margin stands at 698 k€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 306 k€, representing 38.5% of revenue. Warning negative scissor effect: despite revenue change (-32%), EBITDA varies by -58%, reducing margin by 24.3 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 213 k€, i.e. 26.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 690%. 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 35.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 23.0% 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 1209.52. 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 18.2x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 66 days. Excellent situation: suppliers finance 66 days of the operating cycle (retail model). Inventory turnover is 1261 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1218 days of revenue, i.e. 2.7 M€ to permanently finance. Over 2018-2022, WCR increased by +329%, requiring additional financing.

Based on 241 transactions of similar company sales in 2022, the value of SARL LA MADELEINE is estimated at 832 137 € (range 342 175€ - 1 949 599€). With an EBITDA of 306 281€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.68x (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.