VIF : revenue, balance sheet and financial ratios

In 2024, VIF achieves revenue of 2.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.0%. Significant drop of -75% vs 2023. After deducting consumption (877 k€), gross margin stands at 1.8 M€, i.e. a rate of 67%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -1.9 M€, representing -71.9% of revenue. Warning negative scissor effect: despite revenue change (-75%), EBITDA varies by -169%, reducing margin by 98.3 pts. This reflects costs rising faster than revenue. Negative EBITDA means operations do not cover current expenses: concerning situation. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.2 M€, i.e. 43.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 171%. 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 31%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 15.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 38.7% 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 145.68. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 448 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 185 days. The gap of 263 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 1501 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1864 days of revenue, i.e. 13.7 M€ to permanently finance. Over 2016-2024, WCR increased by +126%, requiring additional financing.

Based on 80 transactions of similar company sales (all years), the value of VIF is estimated at 1 528 549 € (range 496 615€ - 4 075 695€). 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.