YVAN SERRAS BEAUTE : revenue, balance sheet and financial ratios

In 2016, YVAN SERRAS BEAUTE achieves revenue of 461 k€. Significant drop of -16% vs 2015. After deducting consumption (56 k€), gross margin stands at 406 k€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 87 k€, representing 19.0% of revenue. Warning negative scissor effect: despite revenue change (-16%), EBITDA varies by -33%, reducing margin by 4.9 pts. This reflects costs rising faster than revenue. Compared with its sector, this ratio places the company among the best positioned (sector median: 4.3%). Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 63 k€, i.e. 13.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 153%. This ratio is less favorable than the sector median (17.4%) and warrants attention. Financial autonomy (= Equity / Total assets x 100) reaches 20%. This ratio is slightly less favorable than the sector median (35.9%). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.8 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 17.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Compared with its sector, this ratio places the company among the best positioned (sector median: 3.2%).

The liquidity ratio (= Current assets / Current liabilities) stands at 1.85. This ratio is slightly less favorable than the sector median (1.9). The interest coverage ratio (= EBIT / Interest expenses) is 8.8x. 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: 79 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 626 days. Excellent situation: suppliers finance 547 days of the operating cycle (retail model). Inventory turnover is 732 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 814 days of revenue, i.e. 1.0 M€ to permanently finance. Between 2015 and 2016, WCR worsened by 133 days of revenue, signaling an increased financing need.

Based on 64 transactions of similar company sales (all years), the value of YVAN SERRAS BEAUTE is estimated at 178 839 € (range 97 816€ - 718 947€). With an EBITDA of 87 466€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.38x (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.