THE A-B RANCH HOUSE : revenue, balance sheet and financial ratios

In 2025, THE A-B RANCH HOUSE achieves revenue of 553 k€. Revenue is growing positively over 6 years (CAGR: +1.8%). Vs 2024: +0%. After deducting consumption (27 k€), gross margin stands at 526 k€, i.e. a rate of 95%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 17 k€, representing 3.1% of revenue. Warning negative scissor effect: despite revenue change (+0%), EBITDA varies by -60%, reducing margin by 4.7 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -26 k€ (-4.6% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 36%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 62%. 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 54.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 420.73. 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 12.6x. 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: 5 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 56 days. Excellent situation: suppliers finance 51 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 210 days of revenue, i.e. 323 k€ to permanently finance. Over 2019-2025, WCR increased by +872%, requiring additional financing.

Based on 114 transactions of similar company sales in 2025, the value of THE A-B RANCH HOUSE is estimated at 141 722 € (range 59 067€ - 282 527€). With an EBITDA of 17 188€, the sector multiple of 4.9x is applied. The price/revenue ratio is 0.43x (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.