Let me analyze ØRSTED A/S's adjusted leverage trend for 2022 by examining key metrics. ## Key Leverage Metrics **Debt Analysis:** - Long-term Borrowings 2022: 31,502m DKK - Short-term Borrowings 2022: 19,493m DKK - Total Borrowings 2022: 50,995m DKK - Long-term Borrowings 2023: 60,451m DKK - Short-term Borrowings 2023: 2,830m DKK - Total Borrowings 2023: 63,281m DKK **EBITDA Analysis (Operating Profit + DA):** - EBITDA 2022: 16,195m + 8,101m = 24,296m DKK - EBITDA 2023: 19,774m + 12,283m = 32,057m DKK **Leverage Ratios:** - Net Debt/EBITDA 2022: (50,995 - 8,614) / 24,296 = 1.75x - Net Debt/EBITDA 2023: (63,281 - 16,178) / 32,057 = 1.47x **Equity Analysis:** - Total Equity 2022: 85,137m DKK - Total Equity 2023: 95,532m DKK (+12.2%) - Equity Attributable to Parents 2022: 64,072m DKK - Equity Attributable to Parents 2023: 71,743m DKK (+12.0%) **Net Debt/Equity:** - 2022: 42,381 / 85,137 = 0.50x - 2023: 47,103 / 95,532 = 0.49x ## Assessment **Positive Indicators (Improving):** 1. Net Debt/EBITDA decreased from 1.75x to 1.47x (improvement of 0.28x) 2. EBITDA grew substantially (+32% YoY), driven by strong operational performance 3. Total equity increased by 12.2% 4. Operating profit and cash generation improved significantly **Negative Indicators (Deteriorating):** 1. Absolute debt levels increased (50,995m to 63,281m) 2. Cash increased but net debt still rose **Analysis:** Despite absolute debt increasing, the leverage ratios are improving significantly. The substantial EBITDA growth of 32% more than compensates for the modest debt increase. The company's ability to service debt has strengthened materially. This is a classic case where absolute debt levels increased, but leverage ratios improved due to stronger earnings and cash generation. For a Moody's adjusted leverage assessment, the focus is on leverage ratios and the company's debt serviceability profile. The improvement in Net Debt/EBITDA from 1.75x to 1.47x represents a meaningful deleveraging trend, coupled with strong EBITDA growth. Improving