# FFO / Net Debt Ratio Calculation for Fortum Oyj (2022)

## Reasoning

The FFO (Funds From Operations) / Net Debt ratio is a key credit metric used by S&P. Let me calculate each component:

### 1. Funds From Operations (FFO)

S&P's FFO formula is:
**FFO = Net Income + Depreciation & Amortization + Non-recurring/Non-cash items adjustments - Changes in Working Capital**

From the data for 2021-01-01 to 2022-01-01:
- Profit Loss From Continuing Operations (Net Income): 4,008,000,000 EUR
- Depreciation And Amortisation Expense: 587,000,000 EUR
- Adjustments For Alternative Performance Measures (items affecting comparability): 2,897,000,000 EUR
- Increase Decrease In Working Capital: 494,000,000 EUR

However, for continuing operations cash flow approach:
- Cash Flows From Used In Operations Before Changes In Working Capital: 1,613,000,000 EUR
- Increase Decrease In Working Capital: 494,000,000 EUR
- Cash Flows From Used In Operating Activities Continuing Operations: 1,119,000,000 EUR

Let me use the operating cash flow from continuing operations as a proxy for FFO:
**FFO = 1,119,000,000 EUR** (from continuing operations operating cash flow)

For a more comprehensive view including discontinued operations might be relevant, but S&P typically focuses on continuing operations for credit analysis.

### 2. Net Debt Calculation

Net Debt = Total Debt - Cash and Cash Equivalents

From balance sheet data at 2022-01-01:
- Other Noncurrent Financial Liabilities: 8,701,000,000 EUR
- Current Borrowings (implied from Other Current Financial Liabilities): 8,519,000,000 EUR
- Total Debt ≈ 17,220,000,000 EUR

- Liquid Funds (Cash): 7,592,000,000 EUR

**Net Debt = 17,220,000,000 - 7,592,000,000 = 9,628,000,000 EUR**

### 3. FFO / Net Debt Ratio

**Ratio = 1,119,000,000 / 9,628,000,000 = 0.116 or 11.6%**

This indicates relatively weak cash generation relative to debt burden, which is reasonable given the energy company's capital-intensive nature and the volatile commodity price environment in 2022.

<answer>0.12</answer>