# Net Debt / EBITDA Ratio Analysis for HERA S.P.A. (2022)

## Step 1: Understanding S&P Methodology

The S&P methodology for Net Debt / EBITDA typically uses:
- **Net Debt** = Total Debt - Cash and Cash Equivalents
- **EBITDA** = Operating Profit + Depreciation & Amortization

## Step 2: Calculate EBITDA for 2022 (2022-01-01 to 2023-01-01)

EBITDA = Operating Profit + Depreciation & Amortization

From the data:
- Profit Loss From Operating Activities (2022-2023): €533,800,000
- Amortisation Depreciation And Provisions (2022-2023): €667,100,000

**EBITDA = 533,800,000 + 667,100,000 = €1,200,900,000**

## Step 3: Calculate Total Debt

Total Debt includes:
- Noncurrent Financial Liabilities (2023-01-01): €5,689,900,000
- Current Financial Liabilities (2023-01-01): €650,100,000
- Noncurrent Lease Liabilities (2023-01-01): €55,100,000
- Current Lease Liabilities (2023-01-01): €21,300,000

**Total Debt = 5,689,900,000 + 650,100,000 + 55,100,000 + 21,300,000 = €6,416,400,000**

Note: Using year-end 2022 (2023-01-01) balance sheet figures as these are the year-end positions for fiscal 2022.

## Step 4: Calculate Net Debt

Cash and Cash Equivalents (2023-01-01): €1,942,400,000

**Net Debt = 6,416,400,000 - 1,942,400,000 = €4,474,000,000**

## Step 5: Calculate Net Debt / EBITDA Ratio

**Net Debt / EBITDA = 4,474,000,000 / 1,200,900,000 = 3.73**

<answer>3.73</answer>