SOCIETE HOTELIERE DE VALRUGUES : revenue, balance sheet and financial ratios

In 2024, SOCIETE HOTELIERE DE VALRUGUES achieves revenue of 10.1 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.2%. Vs 2023: +7%. After deducting consumption (1.5 M€), gross margin stands at 8.6 M€, i.e. a rate of 85%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.1 M€, representing 10.8% of revenue. Warning negative scissor effect: despite revenue change (+7%), EBITDA varies by -20%, reducing margin by 3.6 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 224 k€, i.e. 2.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 138%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 36%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 9.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 201.37. 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 9.5x. 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: 6 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 39 days. Excellent situation: suppliers finance 33 days of the operating cycle (retail model). Inventory turnover is 13 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-5 days): operations structurally generate cash. Notable WCR improvement over the period (-127%), freeing up cash.

Based on 99 transactions of similar company sales in 2024, the value of SOCIETE HOTELIERE DE VALRUGUES is estimated at 4 430 869 € (range 1 522 938€ - 8 658 426€). With an EBITDA of 1 088 680€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.54x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.