# Net Debt / EBITDA Ratio Calculation for ØRSTED A/S (2022)

## Reasoning

The Net Debt / EBITDA ratio is a key leverage metric. Using S&P methodology:

**Formula:** Net Debt / EBITDA

where:
- **Net Debt** = Total Debt - Cash and Cash Equivalents
- **EBITDA** = Earnings Before Interest, Taxes, Depreciation, and Amortization

### Step 1: Calculate EBITDA for 2022

From the data provided for the period 2022-01-01 to 2023-01-01:

- Profit Loss Before Tax: 17,609 million DKK
- Add: Finance Costs: 18,050 million DKK
- Subtract: Finance Income: (15,514) million DKK
- Add: Depreciation, Amortisation and Impairment: 12,283 million DKK

**EBITDA = 17,609 + 18,050 - 15,514 + 12,283 = 32,428 million DKK**

Alternatively, using the provided EBIT before depreciation:
- Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation: 32,057 million DKK
- Add back Finance Income net of costs: 18,050 - 15,514 = 2,536 million DKK
- This gives approximately 32,057 million DKK (the EBITDA from operations before financing)

Using the cleaner approach: **EBITDA ≈ 32,057 million DKK** (from operating activities before interest, taxes, D&A)

### Step 2: Calculate Total Debt

As of 2022-01-01 (end of 2021):
- Longterm Borrowings: 31,502 million DKK
- Shortterm Borrowings: 19,493 million DKK
- **Total Debt = 50,995 million DKK**

### Step 3: Calculate Cash and Cash Equivalents

As of 2022-01-01 (end of 2021):
- Cash and Cash Equivalents: 8,614 million DKK

### Step 4: Calculate Net Debt

**Net Debt = 50,995 - 8,614 = 42,381 million DKK**

### Step 5: Calculate Net Debt / EBITDA Ratio

**Net Debt / EBITDA = 42,381 / 32,057 = 1.32**

<answer>1.32</answer>