GRANDE PHARMACIE BEAUJON : revenue, balance sheet and financial ratios

In 2019, GRANDE PHARMACIE BEAUJON achieves revenue of 2.6 M€. Activity remains stable over the period (CAGR: -0.2%). Vs 2018: +4%. After deducting consumption (1.8 M€), gross margin stands at 734 k€, i.e. a rate of 29%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 136 k€, representing 5.3% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 71 k€, i.e. 2.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 17%. 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 64%. 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 0.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 153.31. 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 23.1x. 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: 5 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 43 days. Excellent situation: suppliers finance 38 days of the operating cycle (retail model). Inventory turnover is 43 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 61 days of revenue, i.e. 435 k€ to permanently finance. Over 2014-2019, WCR increased by +23%, requiring additional financing.

Based on 205 transactions of similar company sales in 2019, the value of GRANDE PHARMACIE BEAUJON is estimated at 1 339 669 € (range 934 048€ - 1 856 907€). With an EBITDA of 136 439€, the sector multiple of 9.2x is applied. The price/revenue ratio is 0.70x (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.