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

## Step 1: Understanding S&P Methodology

S&P's Net Debt / EBITDA ratio typically uses:
- **Net Debt** = Total Debt - Cash and Cash Equivalents
- **EBITDA** = EBIT (Operating Income) + Depreciation & Amortization

## Step 2: Calculate Total Debt (2022-01-01)

From the balance sheet data for 2022-01-01:
- Long-term Borrowings: 30,458,000,000 EUR
- Current Borrowings and Current Portion of Noncurrent Borrowings: 10,590,000,000 EUR

**Total Debt = 30,458 + 10,590 = 41,048,000,000 EUR**

## Step 3: Identify Cash and Cash Equivalents (2022-01-01)

- Cash and Cash Equivalents: 13,890,000,000 EUR

## Step 4: Calculate Net Debt (2022-01-01)

**Net Debt = 41,048 - 13,890 = 27,158,000,000 EUR**

## Step 5: Calculate EBITDA for 2022 (fiscal year 2022-01-01 to 2023-01-01)

Starting with Operating Profit and adjusting:
- Profit Loss From Operating Activities: 1,127,000,000 EUR
- Add: Depreciation Amortization And Provisions: 5,187,000,000 EUR

**EBITDA = 1,127 + 5,187 = 6,314,000,000 EUR**

## Step 6: Calculate Net Debt / EBITDA Ratio

**Net Debt / EBITDA = 27,158 / 6,314 = 4.30**

<answer>4.30</answer>