PHARMACIE DE PARIS : revenue, balance sheet and financial ratios

In 2024, PHARMACIE DE PARIS achieves revenue of 2.0 M€. Revenue is growing positively over 9 years (CAGR: +0.7%). Vs 2023: +5%. After deducting consumption (1.4 M€), gross margin stands at 585 k€, i.e. a rate of 29%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 81 k€, representing 4.0% of revenue. Warning negative scissor effect: despite revenue change (+5%), EBITDA varies by -36%, reducing margin by 2.6 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 67 k€, i.e. 3.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 213%. 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 26%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 16.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 119.59. 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 12.9x. 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: 10 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 61 days. Excellent situation: suppliers finance 51 days of the operating cycle (retail model). Inventory turnover is 53 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 49 days of revenue, i.e. 277 k€ to permanently finance. Over 2016-2024, WCR increased by +224%, requiring additional financing.

Based on 225 transactions of similar company sales in 2024, the value of PHARMACIE DE PARIS is estimated at 952 032 € (range 702 567€ - 1 354 650€). With an EBITDA of 81 446€, 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.