FLORIAN GEMS : revenue, balance sheet and financial ratios

In 2024, FLORIAN GEMS achieves revenue of 1 k€. Revenue is declining over the period 2015-2024 (CAGR: -12.1%). Significant drop of -36% vs 2022. After deducting consumption (618 €), gross margin stands at 821 €, i.e. a rate of 57%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 127 €, representing 8.8% of revenue. Warning negative scissor effect: despite revenue change (-36%), EBITDA varies by -65%, reducing margin by 7.4 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 126 €, i.e. 8.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 402%. 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 20%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 432.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.8% 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 52460.77. 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: 258 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 0 days. The gap of 258 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 16600 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 16877 days of revenue, i.e. 67 k€ to permanently finance. Notable WCR improvement over the period (-27%), freeing up cash.

Based on 145 transactions of similar company sales (all years), the value of FLORIAN GEMS is estimated at 331 € (range 123€ - 825€). With an EBITDA of 127€, the sector multiple of 2.6x is applied. The price/revenue ratio is 0.19x (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.