SOCIETE D'EDITION LES BELLES LETTRES : revenue, balance sheet and financial ratios

In 2024, SOCIETE D'EDITION LES BELLES LETTRES achieves revenue of 4.0 M€. Revenue is growing positively over 9 years (CAGR: +4.1%). Vs 2023, growth of +12% (3.6 M€ -> 4.0 M€). After deducting consumption (-190 k€), gross margin stands at 4.2 M€, i.e. a rate of 105%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 938 k€, representing 23.2% of revenue. Positive scissor effect: EBITDA margin improves by +4.2 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 27 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 6%. 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 51%. 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 1.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 4.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 268.64. 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 0.4x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 15 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 77 days. Excellent situation: suppliers finance 62 days of the operating cycle (retail model). Inventory turnover is 536 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 190 days of revenue, i.e. 2.1 M€ to permanently finance. Over 2016-2024, WCR increased by +46%, requiring additional financing.

Based on 104 transactions of similar company sales (all years), the value of SOCIETE D'EDITION LES BELLES LETTRES is estimated at 857 745 € (range 429 188€ - 2 810 176€). With an EBITDA of 938 144€, the sector multiple of 1.1x is applied. The price/revenue ratio is 0.24x (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.