LIBRAIRIE DES DEUX FRERES : revenue, balance sheet and financial ratios

In 2024, LIBRAIRIE DES DEUX FRERES achieves revenue of 85 k€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.2%. Vs 2023: +3%. After deducting consumption (56 k€), gross margin stands at 28 k€, i.e. a rate of 34%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 366 €, representing 0.4% of revenue. Warning negative scissor effect: despite revenue change (+3%), EBITDA varies by -91%, reducing margin by 4.3 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 337 €, i.e. 0.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 139%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 40%. 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 177.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 2758.74. 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 6.3x. 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: 2 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 16 days. Favorable situation: supplier credit is longer than customer credit by 14 days. Inventory turnover is 441 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 447 days of revenue, i.e. 105 k€ to permanently finance.

Based on 121 transactions of similar company sales (all years), the value of LIBRAIRIE DES DEUX FRERES is estimated at 7 680 € (range 4 304€ - 16 741€). With an EBITDA of 366€, the sector multiple of 3.2x is applied. The price/revenue ratio is 0.27x (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.