SOCIETE DE RESTAURATION DESFOSSEY (SRD) : revenue, balance sheet and financial ratios

In 2024, SOCIETE DE RESTAURATION DESFOSSEY (SRD) achieves revenue of 946 k€. Revenue is declining over the period 2018-2024 (CAGR: -10.1%). Slight decline of -1% vs 2023. After deducting consumption (293 k€), gross margin stands at 653 k€, i.e. a rate of 69%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 87 k€, representing 9.2% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -37%, reducing margin by 5.2 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Net income is negative at -37 k€ (-3.9% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 2522%. 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 3%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 28.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 69.39. 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 18.9x. 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: 108 days. Excellent situation: suppliers finance 107 days of the operating cycle (retail model). Inventory turnover is 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 15 days of revenue, i.e. 39 k€ to permanently finance. Over 2018-2024, WCR increased by +710%, requiring additional financing.

Based on 698 transactions of similar company sales in 2024, the value of SOCIETE DE RESTAURATION DESFOSSEY (SRD) is estimated at 497 075 € (range 262 713€ - 877 604€). With an EBITDA of 87 443€, the sector multiple of 5.4x is applied. The price/revenue ratio is 0.57x (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.