PHARMACIE DES MEZEREAUX : revenue, balance sheet and financial ratios

In 2024, PHARMACIE DES MEZEREAUX achieves revenue of 1.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.3%. Vs 2023, growth of +11% (1.6 M€ -> 1.7 M€). After deducting consumption (1.3 M€), gross margin stands at 480 k€, i.e. a rate of 27%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 62 k€, representing 3.5% of revenue. Warning negative scissor effect: despite revenue change (+11%), EBITDA varies by -53%, reducing margin by 4.9 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 2 k€, i.e. 0.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 44%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 54%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.2 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 182.13. 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 8.8x. 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: 14 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 59 days. Excellent situation: suppliers finance 45 days of the operating cycle (retail model). Inventory turnover is 46 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 83 days of revenue, i.e. 404 k€ to permanently finance. Over 2016-2024, WCR increased by +287%, requiring additional financing.

Based on 225 transactions of similar company sales in 2024, the value of PHARMACIE DES MEZEREAUX is estimated at 625 538 € (range 471 300€ - 873 594€). With an EBITDA of 61 862€, 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.