V F G ENTREPRISES : revenue, balance sheet and financial ratios

In 2024, V F G ENTREPRISES achieves revenue of 516 k€. Revenue is declining over the period 2016-2024 (CAGR: -12.4%). Significant drop of -68% vs 2023. After deducting consumption (0 €), gross margin stands at 516 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 21 k€, representing 4.1% of revenue. Warning negative scissor effect: despite revenue change (-68%), EBITDA varies by -94%, reducing margin by 18.9 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 1.1 M€, i.e. 209.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 96%. 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 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 175.1% 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 2997.00. 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 3309.1x. 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: 387 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 71 days. The gap of 316 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 439 days of revenue, i.e. 629 k€ to permanently finance. Notable WCR improvement over the period (-69%), freeing up cash.

Based on 215 transactions of similar company sales (all years), the value of V F G ENTREPRISES is estimated at 353 219 € (range 154 661€ - 1 024 704€). With an EBITDA of 21 164€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.16x (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.