CHRISTIAN DIOR COUTURE : revenue, balance sheet and financial ratios

In 2024, CHRISTIAN DIOR COUTURE achieves revenue of 4.4 Bn€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +20.0%. Slight decline of -4% vs 2023. After deducting consumption (1.5 Bn€), gross margin stands at 2.9 Bn€, i.e. a rate of 67%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.4 Bn€, representing 32.5% of revenue. Warning negative scissor effect: despite revenue change (-4%), EBITDA varies by -11%, reducing margin by 2.6 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.0 Bn€, i.e. 45.0% 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 92%. 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 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 46.9% 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 410.19. 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 8.6x. 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: 26 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 62 days. Excellent situation: suppliers finance 36 days of the operating cycle (retail model). Inventory turnover is 65 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 227 days of revenue, i.e. 2.8 Bn€ to permanently finance. Over 2016-2024, WCR increased by +441%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of CHRISTIAN DIOR COUTURE is estimated at 2 877 330 824 € (range 1 074 677 729€ - 5 871 836 765€). With an EBITDA of 1 434 505 000€, 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.