VINCENT GIRARDIN : revenue, balance sheet and financial ratios

In 2024, VINCENT GIRARDIN achieves revenue of 16.5 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.0%. Slight decline of -4% vs 2023. After deducting consumption (10.2 M€), gross margin stands at 6.3 M€, i.e. a rate of 38%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.0 M€, representing 11.9% of revenue. Warning negative scissor effect: despite revenue change (-4%), EBITDA varies by -21%, reducing margin by 2.6 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 1.2 M€, i.e. 7.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 88%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 41%. 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 10.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 9.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 411.66. 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 34.8x. 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: 37 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 224 days. Excellent situation: suppliers finance 187 days of the operating cycle (retail model). Inventory turnover is 463 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 678 days of revenue, i.e. 31.1 M€ to permanently finance. Over 2017-2024, WCR increased by +46%, requiring additional financing.

Based on 55 transactions of similar company sales (all years), the value of VINCENT GIRARDIN is estimated at 4 818 447 € (range 2 504 476€ - 12 011 575€). With an EBITDA of 1 972 010€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.34x (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.