PHARMACIE DES GRANDS HOMMES : revenue, balance sheet and financial ratios

In 2023, PHARMACIE DES GRANDS HOMMES achieves revenue of 16.8 M€. Revenue is growing positively over 9 years (CAGR: +3.2%). Slight decline of -1% vs 2022. After deducting consumption (10.4 M€), gross margin stands at 6.5 M€, i.e. a rate of 38%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.5 M€, representing 8.8% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -24%, reducing margin by 2.7 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 664 k€, i.e. 3.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 855%. 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 7%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 12.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 166.86. 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 27.7x. 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: 3 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 145 days. Excellent situation: suppliers finance 142 days of the operating cycle (retail model). Inventory turnover is 60 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 162 days of revenue, i.e. 7.6 M€ to permanently finance. Over 2016-2023, WCR increased by +213%, requiring additional financing.

Based on 220 transactions of similar company sales in 2023, the value of PHARMACIE DES GRANDS HOMMES is estimated at 12 381 501 € (range 7 855 716€ - 15 859 064€). With an EBITDA of 1 474 608€, the sector multiple of 10.0x is applied. The price/revenue ratio is 0.69x (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.