PERLE DE PROVENCE : revenue, balance sheet and financial ratios

In 2024, PERLE DE PROVENCE achieves revenue of 159 k€. Activity remains stable over the period (CAGR: -4.8%). Slight decline of -4% vs 2023. After deducting consumption (86 k€), gross margin stands at 73 k€, i.e. a rate of 46%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 12 k€, representing 7.4% of revenue. Positive scissor effect: EBITDA margin improves by +7.6 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 7 k€, i.e. 4.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 104%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 36%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 5.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 179.56. 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 32.5x. 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: 63 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 98 days. Excellent situation: suppliers finance 35 days of the operating cycle (retail model). Inventory turnover is 78 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 59 days of revenue, i.e. 26 k€ to permanently finance. Notable WCR improvement over the period (-21%), freeing up cash.

Based on 64 transactions of similar company sales (all years), the value of PERLE DE PROVENCE is estimated at 34 561 € (range 20 221€ - 110 924€). With an EBITDA of 11 771€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.38x (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.