TERRES A VIVRE : revenue, balance sheet and financial ratios

In 2024, TERRES A VIVRE achieves revenue of 228 k€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +12.8%. Significant drop of -42% vs 2023. After deducting consumption (164 k€), gross margin stands at 65 k€, i.e. a rate of 28%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 62 k€, representing 27.4% of revenue. Warning negative scissor effect: despite revenue change (-42%), EBITDA varies by -54%, reducing margin by 7.5 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 53 k€, i.e. 23.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1395%. 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 7%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 39.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 23.4% 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 571.39. 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 62.5x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 5051 days. Excellent situation: suppliers finance 5051 days of the operating cycle (retail model). Inventory turnover is 1487 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 4325 days of revenue, i.e. 2.7 M€ to permanently finance. Notable WCR improvement over the period (-35%), freeing up cash.

Based on 80 transactions of similar company sales (all years), the value of TERRES A VIVRE is estimated at 75 552 € (range 27 613€ - 211 368€). With an EBITDA of 62 457€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.28x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.