DRAGO PARIS : revenue, balance sheet and financial ratios

In 2023, DRAGO PARIS achieves revenue of 12.8 M€. Over the period 2018-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +12.5%. Vs 2022, growth of +15% (11.1 M€ -> 12.8 M€). After deducting consumption (3.1 M€), gross margin stands at 9.6 M€, i.e. a rate of 75%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 782 k€, representing 6.1% of revenue. Positive scissor effect: EBITDA margin improves by +7.0 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 378 k€, i.e. 3.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 168%. 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 24%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 11.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 266.76. 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 12.2x. 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: 72 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 116 days. Excellent situation: suppliers finance 44 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 297 days of revenue, i.e. 10.5 M€ to permanently finance. Over 2018-2023, WCR increased by +95%, requiring additional financing.

Based on 101 transactions of similar company sales (all years), the value of DRAGO PARIS is estimated at 2 106 072 € (range 766 441€ - 3 899 642€). With an EBITDA of 782 229€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.24x (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.