# Net Debt / EBITDA Ratio Calculation for ITALGAS S.P.A. (2022)

## Step 1: Identify the S&P Methodology Components

S&P's Net Debt / EBITDA formula is:
**Net Debt / EBITDA = (Total Debt - Cash) / EBITDA**

Where:
- **Total Debt** = Short-term financial liabilities + Long-term financial liabilities
- **Cash** = Cash and cash equivalents
- **EBITDA** = EBIT + Depreciation & Amortization

## Step 2: Extract Data for 2022 (as of 2022-01-01)

### Debt Components (2022-01-01):
- Short Term Financial Liabilities: 591,188,000 EUR
- Long Term Financial Liabilities: 5,785,707,000 EUR
- **Total Debt** = 591,188,000 + 5,785,707,000 = **6,376,895,000 EUR**

### Cash (2022-01-01):
- Cash and Cash Equivalents: **1,391,763,000 EUR**

### Net Debt (2022):
- Net Debt = 6,376,895,000 - 1,391,763,000 = **4,985,132,000 EUR**

## Step 3: Calculate EBITDA for Fiscal Year 2021-2022

For the period 2021-01-01 to 2022-01-01:

- **EBIT (Operating Profit)**: 583,231,000 EUR
- **Depreciation & Amortization**: 444,387,000 EUR
- **Impairment Loss**: 864,000 EUR

**EBITDA** = 583,231,000 + 444,387,000 + 864,000 = **1,028,482,000 EUR**

## Step 4: Calculate Net Debt / EBITDA Ratio

Net Debt / EBITDA = 4,985,132,000 / 1,028,482,000 = **4.85**

<answer>4.85</answer>