SELAS PHARMACIE DU TRIANON : revenue, balance sheet and financial ratios

In 2023, SELAS PHARMACIE DU TRIANON achieves revenue of 11.7 M€. Activity remains stable over the period (CAGR: -2.9%). Significant drop of -48% vs 2022. After deducting consumption (7.8 M€), gross margin stands at 3.9 M€, i.e. a rate of 33%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.5 M€, representing 12.7% of revenue. Warning negative scissor effect: despite revenue change (-48%), EBITDA varies by -64%, reducing margin by 5.7 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 861 k€, i.e. 7.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 307%. 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 21%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 14.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 10.0% 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 366.73. 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 2.9x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 6 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 120 days. Excellent situation: suppliers finance 114 days of the operating cycle (retail model). Inventory turnover is 128 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 143 days of revenue, i.e. 4.6 M€ to permanently finance. Over 2016-2023, WCR increased by +89%, requiring additional financing.

Based on 220 transactions of similar company sales in 2023, the value of SELAS PHARMACIE DU TRIANON is estimated at 11 834 301 € (range 7 405 021€ - 15 263 081€). With an EBITDA of 1 483 365€, the sector multiple of 10.0x is applied. The price/revenue ratio is 0.69x (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.