BOUTIQUE CLUB AND PRO : revenue, balance sheet and financial ratios

In 2023, BOUTIQUE CLUB AND PRO achieves revenue of 616 k€. Over the period 2017-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +20.1%. Vs 2022, growth of +15% (536 k€ -> 616 k€). After deducting consumption (373 k€), gross margin stands at 242 k€, i.e. a rate of 39%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 70 k€, representing 11.3% of revenue. Positive scissor effect: EBITDA margin improves by +5.1 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 60 k€, i.e. 9.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 23%. 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 12%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.8% 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 225.36. 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 1.8x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 94 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 65 days. The company must finance 29 days of gap between collections and payments. Inventory turnover is 20 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 55 days of revenue, i.e. 94 k€ to permanently finance. Over 2017-2023, WCR increased by +388%, requiring additional financing.

Based on 100 transactions of similar company sales in 2023, the value of BOUTIQUE CLUB AND PRO is estimated at 261 783 € (range 130 486€ - 551 149€). With an EBITDA of 69 865€, the sector multiple of 3.9x is applied. The price/revenue ratio is 0.42x (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.