SNC LA FOSSE : revenue, balance sheet and financial ratios

In 2022, SNC LA FOSSE achieves revenue of 689 k€. Over the period 2017-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +12.9%. Vs 2021, growth of +52% (453 k€ -> 689 k€). After deducting consumption (201 k€), gross margin stands at 488 k€, i.e. a rate of 71%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 395 k€, representing 57.3% of revenue. Positive scissor effect: EBITDA margin improves by +4.7 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 366 k€, i.e. 53.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 660%. 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 10%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.5 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 44.6% 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 85.71. 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 5.0x. 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: 209 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 119 days. The gap of 90 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 38 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-56 days): operations structurally generate cash. Notable WCR improvement over the period (-163%), freeing up cash.

Based on 138 transactions of similar company sales (all years), the value of SNC LA FOSSE is estimated at 925 773 € (range 326 462€ - 1 723 085€). With an EBITDA of 395 241€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.41x (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.