GALERIE MAEGHT : revenue, balance sheet and financial ratios

In 2024, GALERIE MAEGHT achieves revenue of 1.8 M€. Activity remains stable over the period (CAGR: -3.4%). Significant drop of -21% vs 2023. After deducting consumption (387 k€), gross margin stands at 1.4 M€, i.e. a rate of 78%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 141 k€, representing 7.9% of revenue. Warning negative scissor effect: despite revenue change (-21%), EBITDA varies by -53%, reducing margin by 5.3 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 235 k€, i.e. 13.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 128%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 39%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 20.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 13.1% 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 868.60. 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 3.7x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 57 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 178 days. Excellent situation: suppliers finance 121 days of the operating cycle (retail model). Inventory turnover is 1688 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1849 days of revenue, i.e. 9.2 M€ to permanently finance. Over 2015-2024, WCR increased by +25%, requiring additional financing.

Based on 117 transactions of similar company sales in 2024, the value of GALERIE MAEGHT is estimated at 678 307 € (range 408 008€ - 1 305 106€). With an EBITDA of 140 580€, 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.