PHARMACIE DE VICO : revenue, balance sheet and financial ratios

In 2022, PHARMACIE DE VICO achieves revenue of 1.0 M€. Over the period 2018-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +7.4%. Slight decline of -5% vs 2021. After deducting consumption (723 k€), gross margin stands at 278 k€, i.e. a rate of 28%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 48 k€, representing 4.8% of revenue. Warning negative scissor effect: despite revenue change (-5%), EBITDA varies by -42%, reducing margin by 3.1 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 72 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 807%. 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 9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.6 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 7.6% 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 243.87. 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 13.7x. 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: 17 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 45 days. Favorable situation: supplier credit is longer than customer credit by 28 days. Inventory turnover is 62 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 93 days of revenue, i.e. 257 k€ to permanently finance. Over 2018-2022, WCR increased by +197%, requiring additional financing.

Based on 215 transactions of similar company sales in 2022, the value of PHARMACIE DE VICO is estimated at 638 829 € (range 479 862€ - 896 919€). With an EBITDA of 48 289€, the sector multiple of 9.3x is applied. The price/revenue ratio is 0.81x (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.