TERRES DE FRANCE : revenue, balance sheet and financial ratios

In 2024, TERRES DE FRANCE achieves revenue of 1.4 M€. Revenue is declining over the period 2016-2024 (CAGR: -8.7%). Vs 2023: +7%. After deducting consumption (2 k€), gross margin stands at 1.4 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 38 k€, representing 2.8% of revenue. Warning negative scissor effect: despite revenue change (+7%), EBITDA varies by -59%, reducing margin by 4.4 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 264 k€, i.e. 19.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 110%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 37%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.7 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 20.9% 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 252.29. 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 33.9x. 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: 184 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 93 days. The gap of 91 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 294 days of revenue, i.e. 1.1 M€ to permanently finance. Over 2016-2024, WCR increased by +110%, requiring additional financing.

Based on 261 transactions of similar company sales (all years), the value of TERRES DE FRANCE is estimated at 727 578 € (range 377 915€ - 1 403 314€). With an EBITDA of 37 588€, the sector multiple of 5.3x is applied. The price/revenue ratio is 0.75x (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.