ETABLISSEMENTS ARTHUR PELOSI : revenue, balance sheet and financial ratios

In 2022, ETABLISSEMENTS ARTHUR PELOSI achieves revenue of 4.5 M€. Over the period 2016-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +5.7%. Vs 2021: +9%. After deducting consumption (2.5 M€), gross margin stands at 2.1 M€, i.e. a rate of 46%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 64 k€, representing 1.4% of revenue. Warning negative scissor effect: despite revenue change (+9%), EBITDA varies by -68%, reducing margin by 3.4 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 8 k€, i.e. 0.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 21%. 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 52%. 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 5.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 1.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 304.81. 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 5.4x. 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: 82 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 39 days. The gap of 43 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 49 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 97 days of revenue, i.e. 1.2 M€ to permanently finance. Over 2016-2022, WCR increased by +109%, requiring additional financing.

Based on 276 transactions of similar company sales (all years), the value of ETABLISSEMENTS ARTHUR PELOSI is estimated at 311 667 € (range 161 462€ - 637 172€). With an EBITDA of 64 209€, the sector multiple of 1.7x is applied. The price/revenue ratio is 0.18x (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.