PHARMACIE LE GALL : revenue, balance sheet and financial ratios

In 2024, PHARMACIE LE GALL achieves revenue of 5.4 M€. Activity remains stable over the period (CAGR: -3.1%). Significant drop of -23% vs 2023. After deducting consumption (4.0 M€), gross margin stands at 1.5 M€, i.e. a rate of 27%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches -8 k€, representing -0.1% of revenue. Warning negative scissor effect: despite revenue change (-23%), EBITDA varies by -105%, reducing margin by 2.5 pts. This reflects costs rising faster than revenue. Negative EBITDA means operations do not cover current expenses: concerning situation. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.4 M€, i.e. 26.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 16%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 72%. 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 0.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 25.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 241.84. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 105 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 64 days. The gap of 41 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 42 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 177 days of revenue, i.e. 2.7 M€ to permanently finance. Over 2016-2024, WCR increased by +225%, requiring additional financing.

Based on 225 transactions of similar company sales in 2024, the value of PHARMACIE LE GALL is estimated at 10 023 221 € (range 7 274 286€ - 14 505 683€). 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.