BEST FASHION : revenue, balance sheet and financial ratios

In 2024, BEST FASHION achieves revenue of 2.2 M€. Activity remains stable over the period (CAGR: -1.8%). Vs 2023, growth of +45% (1.5 M€ -> 2.2 M€). After deducting consumption (1.7 M€), gross margin stands at 549 k€, i.e. a rate of 25%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 143 k€, representing 6.5% of revenue. Positive scissor effect: EBITDA margin improves by +2.8 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 101 k€, i.e. 4.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 22%. The balance between equity and debt is satisfactory. Cash flow represents 5.1% 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 123.67. 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: 25 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 133 days. Excellent situation: suppliers finance 108 days of the operating cycle (retail model). Inventory turnover is 175 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 189 days of revenue, i.e. 1.2 M€ to permanently finance. Over 2016-2024, WCR increased by +121%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of BEST FASHION is estimated at 334 420 € (range 142 653€ - 771 418€). With an EBITDA of 143 065€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.17x (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.