TERRE DE LIN DEVELOPPEMENT : revenue, balance sheet and financial ratios

In 2024, TERRE DE LIN DEVELOPPEMENT achieves revenue of 3.4 M€. Revenue is growing positively over 8 years (CAGR: +2.2%). Vs 2023: +1%. After deducting consumption (1.4 M€), gross margin stands at 2.0 M€, i.e. a rate of 59%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -1.4 M€, representing -40.7% of revenue. Warning negative scissor effect: despite revenue change (+1%), EBITDA varies by -37%, reducing margin by 10.9 pts. This reflects costs rising faster than revenue. Negative EBITDA means operations do not cover current expenses: concerning situation. Net income is negative at -16 k€ (-0.5% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 54%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 41%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 12.2% 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 232.07. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 171 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 91 days. The gap of 80 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 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 242 days of revenue, i.e. 2.3 M€ to permanently finance. Over 2017-2024, WCR increased by +67%, requiring additional financing.