# FFO / Net Debt Ratio Calculation for FERROVIAL SA (2022)

## Reasoning

The FFO (Funds From Operations) / Net Debt ratio is a key credit metric used by S&P to assess a company's ability to service debt from operational cash flows.

### S&P FFO Methodology

FFO is calculated as:
**FFO = Operating Cash Flow + Interest Paid - Income Taxes Paid**

Or alternatively:
**FFO = Net Income + Depreciation & Amortization + Impairment + Interest Paid (net) - Taxes Paid + Non-controlling interests adjustments**

### Extracting the Required Data (for fiscal year 2022, ending 2023-01-01)

From the cash flow statement for period 2022-01-01 to 2023-01-01:
- Cash Flows From Operating Activities: **1,002 million EUR**
- Interest Paid (Financing Activities): **329 million EUR**
- Income Taxes Paid: **82 million EUR**

**FFO = 1,002 + 329 - 82 = 1,249 million EUR**

### Net Debt Calculation

Net Debt = Total Debt - Cash and Cash Equivalents

From the balance sheet as of 2023-01-01:

**Total Debt:**
- Noncurrent Portion of Other Noncurrent Borrowings: 10,776 million EUR
- Current Borrowings and Current Portion of Noncurrent Borrowings: 877 million EUR
- Total Debt = 10,776 + 877 = **11,653 million EUR**

**Cash and Cash Equivalents:**
- Cash and Cash Equivalents (total): **5,130 million EUR**

**Net Debt = 11,653 - 5,130 = 6,523 million EUR**

### FFO / Net Debt Ratio

**Ratio = 1,249 / 6,523 = 0.1915 or approximately 19.15%**

This ratio indicates that Ferrovial's annual FFO covers approximately 19.15% of its net debt, which suggests moderate leverage relative to operational cash generation. This is a typical level for large infrastructure and construction companies with significant debt financing.

<answer>0.19</answer>