GALERIE CHRISTIAN BERST : revenue, balance sheet and financial ratios

In 2018, GALERIE CHRISTIAN BERST achieves revenue of 1.4 M€. Over the period 2016-2018, the company shows strong growth with a CAGR (compound annual growth rate) of +36.4%. Vs 2017, growth of +32% (1.0 M€ -> 1.4 M€). After deducting consumption (466 k€), gross margin stands at 922 k€, i.e. a rate of 66%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 328 k€, representing 23.6% of revenue. Positive scissor effect: EBITDA margin improves by +15.8 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 272 k€, i.e. 19.6% 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 44%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 19.9% 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 258.24. 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 0.7x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 40 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 106 days. Excellent situation: suppliers finance 66 days of the operating cycle (retail model). Inventory turnover is 217 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 265 days of revenue, i.e. 1.0 M€ to permanently finance. Over 2016-2018, WCR increased by +125%, requiring additional financing.

Based on 123 transactions of similar company sales in 2018, the value of GALERIE CHRISTIAN BERST is estimated at 1 166 426 € (range 468 093€ - 2 318 951€). With an EBITDA of 327 720€, the sector multiple of 4.2x is applied. The price/revenue ratio is 0.43x (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.