# Net Debt / EBITDA Ratio Analysis for ENEL (S&P Methodology)

## Reasoning:

### Step 1: Calculate EBITDA (2022)
EBITDA = EBIT + Depreciation & Amortization

From the data:
- Profit from Operating Activities (2022): €11,193,000,000
- Depreciation, Amortization & Impairment: €7,447,000,000

**EBITDA = €11,193M + €7,447M = €18,640M**

### Step 2: Calculate Net Debt (as of January 1, 2023 / end of 2022)

**Gross Debt:**
- Long-term Borrowings: €68,191,000,000
- Short-term Borrowings: €18,392,000,000
- Current Portion of Long-term Borrowings: €2,835,000,000
- **Total Gross Debt = €89,418,000,000**

**Less: Cash and Cash Equivalents:**
- Cash and Cash Equivalents: €11,041,000,000

**Net Debt = €89,418M - €11,041M = €78,377M**

### Step 3: Calculate Net Debt / EBITDA Ratio

Net Debt / EBITDA = €78,377M / €18,640M = **4.206x**

This ratio indicates ENEL's leverage was moderately elevated in 2022, with net debt representing approximately 4.2 times its annual EBITDA.

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