PHARMACIE DE LA PORTE D'ESPAGNE : revenue, balance sheet and financial ratios

In 2024, PHARMACIE DE LA PORTE D'ESPAGNE achieves revenue of 17.4 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.3%. Vs 2023, growth of +16% (15.0 M€ -> 17.4 M€). After deducting consumption (12.1 M€), gross margin stands at 5.3 M€, i.e. a rate of 31%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.0 M€, representing 11.3% of revenue. Warning negative scissor effect: despite revenue change (+16%), EBITDA varies by -20%, reducing margin by 5.1 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.3 M€, i.e. 7.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 412%. 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 15%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.0% 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 312.10. 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 7.8x. 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: 9 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 75 days. Excellent situation: suppliers finance 66 days of the operating cycle (retail model). Inventory turnover is 58 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 66 days of revenue, i.e. 3.2 M€ to permanently finance. Over 2017-2024, WCR increased by +155%, requiring additional financing.

Based on 225 transactions of similar company sales in 2024, the value of PHARMACIE DE LA PORTE D'ESPAGNE is estimated at 16 228 295 € (range 11 398 681€ - 24 024 569€). With an EBITDA of 1 974 140€, the sector multiple of 9.2x is applied. The price/revenue ratio is 0.64x (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.