SOCIETE ARMORICAINE DE GRANIT : revenue, balance sheet and financial ratios

In 2024, SOCIETE ARMORICAINE DE GRANIT achieves revenue of 580 k€. Activity remains stable over the period (CAGR: -3.6%). Significant drop of -31% vs 2023. After deducting consumption (122 k€), gross margin stands at 458 k€, i.e. a rate of 79%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 200 k€, representing 34.5% of revenue. Positive scissor effect: EBITDA margin improves by +11.3 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Net income is negative at -41 k€ (-7.1% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 889%. 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 8%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 10.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 24.1% 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 383.36. 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 31.3x. 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: 161 days. Excellent situation: suppliers finance 160 days of the operating cycle (retail model). Inventory turnover is 641 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 639 days of revenue, i.e. 1.0 M€ to permanently finance. Over 2016-2024, WCR increased by +282%, requiring additional financing.

Based on 110 transactions of similar company sales (all years), the value of SOCIETE ARMORICAINE DE GRANIT is estimated at 226 862 € (range 63 944€ - 1 258 512€). With an EBITDA of 200 011€, the sector multiple of 1.5x is applied. The price/revenue ratio is 0.17x (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.