PLAISIRS ET TRADITIONS : revenue, balance sheet and financial ratios

In 2022, PLAISIRS ET TRADITIONS achieves revenue of 319 k€. Revenue is growing positively over 5 years (CAGR: +3.3%). Vs 2019, growth of +26% (254 k€ -> 319 k€). After deducting consumption (190 k€), gross margin stands at 129 k€, i.e. a rate of 41%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 35 k€, representing 11.1% of revenue. Warning negative scissor effect: despite revenue change (+26%), EBITDA varies by -1%, reducing margin by 3.0 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 39 k€, i.e. 12.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 12%. 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 79%. 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 1.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 12.2% 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 705.64. 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 1.0x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 74 days. Excellent situation: suppliers finance 74 days of the operating cycle (retail model). Inventory turnover is 418 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 423 days of revenue, i.e. 375 k€ to permanently finance. Over 2016-2022, WCR increased by +60%, requiring additional financing.

Based on 185 transactions of similar company sales (all years), the value of PLAISIRS ET TRADITIONS is estimated at 111 163 € (range 43 667€ - 255 528€). With an EBITDA of 35 357€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.28x (conservative valuation). 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.