LIBRAIRIE GENERALE DES ECOLES : revenue, balance sheet and financial ratios

In 2022, LIBRAIRIE GENERALE DES ECOLES achieves revenue of 3.1 M€. Revenue is growing positively over 4 years (CAGR: +0.1%). Vs 2019, growth of +11% (2.8 M€ -> 3.1 M€). After deducting consumption (2.2 M€), gross margin stands at 891 k€, i.e. a rate of 29%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 12 k€, representing 0.4% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.3 M€, i.e. 42.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 37%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 68%. 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 0.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 42.8% 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 914.03. 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 77.5x. 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: 80 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 28 days. The gap of 52 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 47 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 343 days of revenue, i.e. 3.0 M€ to permanently finance. Over 2017-2022, WCR increased by +40%, requiring additional financing.

Based on 145 transactions of similar company sales (all years), the value of LIBRAIRIE GENERALE DES ECOLES is estimated at 1 066 137 € (range 281 245€ - 2 057 878€). With an EBITDA of 12 156€, 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.