EURO STAR SHOPPING : revenue, balance sheet and financial ratios

In 2022, EURO STAR SHOPPING achieves revenue of 95 k€. Revenue is growing positively over 6 years (CAGR: +3.5%). Vs 2021, growth of +23% (77 k€ -> 95 k€). After deducting consumption (26 k€), gross margin stands at 69 k€, i.e. a rate of 73%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 19 k€, representing 19.6% of revenue. Warning negative scissor effect: despite revenue change (+23%), EBITDA varies by -13%, reducing margin by 8.3 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 15 k€, i.e. 16.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 29%. 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 20%. The balance between equity and debt is satisfactory. Cash flow represents 16.2% 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 251.15. 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 1.1x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 38 days. Excellent situation: suppliers finance 38 days of the operating cycle (retail model). Inventory turnover is 237 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 71 days of revenue, i.e. 19 k€ to permanently finance. Over 2016-2022, WCR increased by +327%, requiring additional financing.

Based on 185 transactions of similar company sales (all years), the value of EURO STAR SHOPPING is estimated at 48 912 € (range 18 302€ - 107 080€). With an EBITDA of 18 539€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.28x (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.