GRASSE DIFFUSION : revenue, balance sheet and financial ratios

In 2024, GRASSE DIFFUSION achieves revenue of 2.5 M€. Revenue is growing positively over 8 years (CAGR: +0.8%). Slight decline of -1% vs 2023. After deducting consumption (1.6 M€), gross margin stands at 958 k€, i.e. a rate of 38%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 127 k€, representing 5.0% of revenue. Positive scissor effect: EBITDA margin improves by +10.9 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -38 k€ (-1.5% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at -2809%. 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 -2%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 33.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 138.77. 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 30.9x. 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: 13 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 91 days. Excellent situation: suppliers finance 78 days of the operating cycle (retail model). Inventory turnover is 96 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 112 days of revenue, i.e. 792 k€ to permanently finance. Over 2016-2024, WCR increased by +37%, requiring additional financing.

Based on 117 transactions of similar company sales in 2024, the value of GRASSE DIFFUSION is estimated at 818 536 € (range 503 049€ - 1 342 855€). With an EBITDA of 127 116€, the sector multiple of 4.0x is applied. The price/revenue ratio is 0.53x (in line with sector norms). 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.