# Net Debt / EBITDA Ratio Analysis for EDF (2022)

## Step 1: Understanding S&P Methodology

S&P's Net Debt / EBITDA formula typically uses:
- **Net Debt** = Total Debt - Cash and Cash Equivalents
- **EBITDA** = Operating Profit Before Depreciation and Amortisation (EBIT + D&A)

## Step 2: Identifying the Relevant Figures for 2022 (FY ending January 1, 2023)

**EBITDA Calculation:**
- Operating Profit Before Depreciation and Amortisation (EBITDA): €-4,986 million
- Add back: Depreciation and Amortisation: €11,079 million
- EBITDA = -4,986 + 11,079 = **€6,093 million**

Alternatively, directly stated:
- "Operating Profit Before Depreciation And Amortisation" 2022-01-01 - 2023-01-01: **-4,986,000,000 EUR**

However, EBITDA should typically be positive. Let me recalculate using the income statement approach:
- Revenue: €143,476 million
- Less operating expenses to get to EBITDA

Actually, the cleanest approach: EBITDA = Operating Loss + D&A
- Operating Loss (from continuing operations): -18,231 million
- Add D&A: 11,079 million
- EBITDA = -18,231 + 11,079 = **-7,152 million**

This negative EBITDA reflects the severe operational challenges in 2022 due to energy costs.

**Total Debt Calculation:**
- Other Noncurrent Financial Liabilities (Dec 31, 2022): €56,543 million
- Other Current Financial Liabilities (Dec 31, 2022): €45,014 million
- Total Debt = 56,543 + 45,014 = **€101,557 million**

**Cash and Cash Equivalents:**
- Cash and Cash Equivalents (Dec 31, 2022): €9,919 million

**Net Debt:**
- Net Debt = 101,557 - 9,919 = **€91,638 million**

## Step 3: Calculate Net Debt / EBITDA

Net Debt / EBITDA = 91,638 / (-7,152) = **-12.81x**

The negative ratio indicates that EBITDA was negative in 2022 due to the energy crisis impact on EDF's operations. The ratio reflects a deterioration in operational profitability relative to debt levels.

<answer>-12.81</answer>