BEAUTY TECH : revenue, balance sheet and financial ratios

In 2024, BEAUTY TECH achieves revenue of 23.5 M€. Revenue is growing positively over 9 years (CAGR: +3.4%). Significant drop of -15% vs 2023. After deducting consumption (11.5 M€), gross margin stands at 12.0 M€, i.e. a rate of 51%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 415 k€, representing 1.8% of revenue. Warning negative scissor effect: despite revenue change (-15%), EBITDA varies by -61%, reducing margin by 2.1 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 394 k€, i.e. 1.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 154%. 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 28%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 222.18. 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 68.7x. 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: 29 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 48 days. Favorable situation: supplier credit is longer than customer credit by 19 days. Inventory turnover is 65 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 139 days of revenue, i.e. 9.1 M€ to permanently finance. Over 2016-2024, WCR increased by +91%, requiring additional financing.

Based on 64 transactions of similar company sales (all years), the value of BEAUTY TECH is estimated at 3 322 957 € (range 2 103 770€ - 7 568 735€). With an EBITDA of 415 406€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.38x (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.