STRAND COSMETICS EUROPE : revenue, balance sheet and financial ratios

In 2024, STRAND COSMETICS EUROPE achieves revenue of 24.8 M€. Revenue is growing positively over 9 years (CAGR: +0.0%). Vs 2023: +4%. After deducting consumption (7.6 M€), gross margin stands at 17.2 M€, i.e. a rate of 69%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.0 M€, representing 4.2% of revenue. Positive scissor effect: EBITDA margin improves by +5.0 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 567 k€, i.e. 2.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 256%. 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 16%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.7 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 3.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 187.37. 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 24.4x. 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: 22 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 50 days. Favorable situation: supplier credit is longer than customer credit by 28 days. Inventory turnover is 79 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 78 days of revenue, i.e. 5.4 M€ to permanently finance. Notable WCR improvement over the period (-46%), freeing up cash.

Based on 74 transactions of similar company sales (all years), the value of STRAND COSMETICS EUROPE is estimated at 1 199 713 € (range 657 841€ - 3 081 045€). With an EBITDA of 1 031 653€, the sector multiple of 0.6x is applied. The price/revenue ratio is 0.11x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.