TERRES DE FLANDRES : revenue, balance sheet and financial ratios

In 2024, TERRES DE FLANDRES achieves revenue of 265 k€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +47.4%. Vs 2023, growth of +14% (232 k€ -> 265 k€). After deducting consumption (2 k€), gross margin stands at 263 k€, i.e. a rate of 99%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 32 k€, representing 12.1% of revenue. Warning negative scissor effect: despite revenue change (+14%), EBITDA varies by -15%, reducing margin by 4.1 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 262 k€, i.e. 98.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 224%. 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 28%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 117.9% 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 429.74. 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 172.7x. 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: 182 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 196 days. Favorable situation: supplier credit is longer than customer credit by 14 days. Inventory turnover is 839 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1529 days of revenue, i.e. 1.1 M€ to permanently finance. Over 2015-2024, WCR increased by +2753%, requiring additional financing.

Based on 153 transactions of similar company sales (all years), the value of TERRES DE FLANDRES is estimated at 617 340 € (range 253 143€ - 1 235 353€). With an EBITDA of 32 079€, the sector multiple of 7.1x is applied. The price/revenue ratio is 1.61x (premium 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.