MERCK SERONO : revenue, balance sheet and financial ratios

In 2024, MERCK SERONO achieves revenue of 326.6 M€. Activity remains stable over the period (CAGR: -0.9%). Vs 2023: +2%. After deducting consumption (245.6 M€), gross margin stands at 80.9 M€, i.e. a rate of 25%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 5.1 M€, representing 1.6% of revenue. Warning negative scissor effect: despite revenue change (+2%), EBITDA varies by -72%, reducing margin by 4.2 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 7.0 M€, i.e. 2.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 11%. 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 41%. This high autonomy means the company finances most of its assets through equity, a sign of strength.

The liquidity ratio (= Current assets / Current liabilities) stands at 151.94. 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 14.4x. 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: 59 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 5 days. The gap of 54 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 65 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 60 days of revenue, i.e. 54.2 M€ to permanently finance. Notable WCR improvement over the period (-30%), freeing up cash.

Based on 124 transactions of similar company sales (all years), the value of MERCK SERONO is estimated at 23 828 993 € (range 12 609 529€ - 74 001 701€). With an EBITDA of 5 139 087€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (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.