NEO COSMETIQUE : revenue, balance sheet and financial ratios

In 2024, NEO COSMETIQUE achieves revenue of 3.6 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +14.2%. Vs 2023, growth of +29% (2.8 M€ -> 3.6 M€). After deducting consumption (1.2 M€), gross margin stands at 2.4 M€, i.e. a rate of 68%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 480 k€, representing 13.3% of revenue. Positive scissor effect: EBITDA margin improves by +24.9 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 199 k€, i.e. 5.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 868%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 7%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 11.5% 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 335.55. 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 26.0x. 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: 94 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 40 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 186 days of revenue, i.e. 1.9 M€ to permanently finance. Over 2016-2024, WCR increased by +186%, requiring additional financing.

Based on 74 transactions of similar company sales (all years), the value of NEO COSMETIQUE is estimated at 290 487 € (range 132 759€ - 785 683€). With an EBITDA of 480 150€, the sector multiple of 0.6x is applied. The price/revenue ratio is 0.11x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.