RETAILORS BEAUGRENELLE : revenue, balance sheet and financial ratios

In 2023, RETAILORS BEAUGRENELLE achieves revenue of 6.1 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +8.5%. Vs 2022: +4%. After deducting consumption (3.0 M€), gross margin stands at 3.0 M€, i.e. a rate of 50%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 265 k€, representing 4.4% of revenue. Warning negative scissor effect: despite revenue change (+4%), EBITDA varies by -68%, reducing margin by 9.7 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 43 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 178%. 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 29%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.5 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 383.39. 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 7.3x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 19 days. Favorable situation: supplier credit is longer than customer credit by 19 days. Inventory turnover is 27 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 78 days of revenue, i.e. 1.3 M€ to permanently finance. Over 2016-2023, WCR increased by +249%, requiring additional financing.

Based on 239 transactions of similar company sales (all years), the value of RETAILORS BEAUGRENELLE is estimated at 1 004 921 € (range 489 119€ - 1 747 006€). With an EBITDA of 264 939€, the sector multiple of 3.4x 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.