PHARMACIE LEROY : revenue, balance sheet and financial ratios

In 2024, PHARMACIE LEROY achieves revenue of 3.9 M€. Over the period 2020-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +31.3%. Vs 2023: +1%. After deducting consumption (2.9 M€), gross margin stands at 979 k€, i.e. a rate of 25%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 269 k€, representing 6.9% of revenue. Warning negative scissor effect: despite revenue change (+1%), EBITDA varies by -31%, reducing margin by 3.2 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 198 k€, i.e. 5.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 26%. 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 69%. 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 2.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.5% 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 171.85. 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 2.0x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 8 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 36 days. Favorable situation: supplier credit is longer than customer credit by 28 days. Inventory turnover is 25 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 33 days of revenue, i.e. 356 k€ to permanently finance. Over 2020-2024, WCR increased by +65%, requiring additional financing.

Based on 225 transactions of similar company sales in 2024, the value of PHARMACIE LEROY is estimated at 2 542 334 € (range 1 825 576€ - 3 699 286€). With an EBITDA of 268 519€, 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.