SOCIETE HOTELIERE NORD-LAFAYETTE : revenue, balance sheet and financial ratios

In 2023, SOCIETE HOTELIERE NORD-LAFAYETTE achieves revenue of 4.1 M€. Activity remains stable over the period (CAGR: -0.8%). Vs 2022, growth of +18% (3.4 M€ -> 4.1 M€). After deducting consumption (131 k€), gross margin stands at 3.9 M€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 822 k€, representing 20.2% of revenue. Positive scissor effect: EBITDA margin improves by +9.5 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 872 k€, i.e. 21.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -108%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches -104%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 19.4% 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 79.93. 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 2.3x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 7 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 119 days. Excellent situation: suppliers finance 112 days of the operating cycle (retail model). Inventory turnover is 3 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 26 days of revenue, i.e. 290 k€ to permanently finance. Over 2016-2023, WCR increased by +59%, requiring additional financing.

Based on 108 transactions of similar company sales in 2023, the value of SOCIETE HOTELIERE NORD-LAFAYETTE is estimated at 3 190 651 € (range 1 276 190€ - 6 846 240€). With an EBITDA of 822 244€, the sector multiple of 3.7x is applied. The price/revenue ratio is 0.74x (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.