PHARMACIE DE PAMANDZI : revenue, balance sheet and financial ratios

In 2024, PHARMACIE DE PAMANDZI achieves revenue of 2.6 M€. Activity remains stable over the period (CAGR: -1.9%). Slight decline of -4% vs 2022. After deducting consumption (1.5 M€), gross margin stands at 1.1 M€, i.e. a rate of 43%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 257 k€, representing 9.9% of revenue. Warning negative scissor effect: despite revenue change (-4%), EBITDA varies by -28%, reducing margin by 3.2 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 188 k€, i.e. 7.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 434%. 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 16%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 9.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 7.4% 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 338.97. 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 3.9x. Financial charges are adequately covered by operations.

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: 48 days. Excellent situation: suppliers finance 39 days of the operating cycle (retail model). Inventory turnover is 58 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 102 days of revenue, i.e. 740 k€ to permanently finance.

Based on 225 transactions of similar company sales in 2024, the value of PHARMACIE DE PAMANDZI is estimated at 2 214 084 € (range 1 563 600€ - 3 264 273€). With an EBITDA of 257 389€, 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.