GALERIE LELONG SA : revenue, balance sheet and financial ratios

In 2024, GALERIE LELONG SA achieves revenue of 30.0 M€. Revenue is growing positively over 10 years (CAGR: +1.4%). Vs 2023: +0%. After deducting consumption (16.3 M€), gross margin stands at 13.7 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 4.6 M€, representing 15.2% of revenue. Warning negative scissor effect: despite revenue change (+0%), EBITDA varies by -29%, reducing margin by 6.3 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 3.9 M€, i.e. 12.9% 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 85%. 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 11.6% 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 649.78. 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 13.2x. 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: 32 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 88 days. Excellent situation: suppliers finance 56 days of the operating cycle (retail model). Inventory turnover is 691 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 619 days of revenue, i.e. 51.6 M€ to permanently finance. Over 2015-2024, WCR increased by +97%, requiring additional financing.

Based on 117 transactions of similar company sales in 2024, the value of GALERIE LELONG SA is estimated at 15 762 066 € (range 9 875 729€ - 30 118 268€). With an EBITDA of 4 581 094€, the sector multiple of 4.0x is applied. The price/revenue ratio is 0.53x (in line with sector norms). 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.