O'SULLIVANS PUB MONTMARTRE : revenue, balance sheet and financial ratios

In 2023, O'SULLIVANS PUB MONTMARTRE achieves revenue of 5.9 M€. Over the period 2017-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +6.8%. Vs 2022: +8%. After deducting consumption (1.0 M€), gross margin stands at 4.9 M€, i.e. a rate of 83%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.5 M€, representing 25.0% of revenue. Warning negative scissor effect: despite revenue change (+8%), EBITDA varies by -10%, reducing margin by 5.2 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 985 k€, i.e. 16.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 21%. 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 52%. 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 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 18.3% 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 268.73. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 72 days. Excellent situation: suppliers finance 72 days of the operating cycle (retail model). Inventory turnover is 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 120 days of revenue, i.e. 2.0 M€ to permanently finance. Over 2017-2023, WCR increased by +27%, requiring additional financing.

Based on 123 transactions of similar company sales in 2023, the value of O'SULLIVANS PUB MONTMARTRE is estimated at 7 430 052 € (range 4 455 161€ - 12 020 274€). With an EBITDA of 1 463 592€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.97x (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.