SELAS PHARMACIE DU VIEUX LONS : revenue, balance sheet and financial ratios

In 2024, SELAS PHARMACIE DU VIEUX LONS achieves revenue of 1.8 M€. Revenue is growing positively over 9 years (CAGR: +3.7%). Vs 2023, growth of +36% (1.3 M€ -> 1.8 M€). After deducting consumption (1.2 M€), gross margin stands at 542 k€, i.e. a rate of 30%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 96 k€, representing 5.4% of revenue. Positive scissor effect: EBITDA margin improves by +2.1 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -3 k€ (-0.2% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 115%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 41%. 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 21.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 189.87. 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 23.9x. 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: 1 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 51 days. Excellent situation: suppliers finance 50 days of the operating cycle (retail model). Inventory turnover is 63 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 85 days of revenue, i.e. 422 k€ to permanently finance. Over 2016-2024, WCR increased by +358%, requiring additional financing.

Based on 225 transactions of similar company sales in 2024, the value of SELAS PHARMACIE DU VIEUX LONS is estimated at 983 609 € (range 722 549€ - 1 403 418€). With an EBITDA of 96 421€, 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.