# FFO / Net Debt Ratio Estimation for ENI S.P.A. (2022)

## S&P FFO Methodology

FFO (Funds From Operations) per S&P methodology is calculated as:
**FFO = Net Income + Depreciation & Amortization + Impairment Losses - Non-recurring/Non-operating gains + Adjustments**

For a simpler approach aligned with S&P credit analysis:
**FFO ≈ Operating Cash Flow + Interest Paid - Working Capital Changes** (in some variations)

However, the most common S&P approach uses:
**FFO = Net Income + D&A + Impairment (reversals) - Gains on asset sales**

## Calculation for 2022 (year ending 2023-01-01)

### FFO Components:

1. **Net Income (Profit for the period)**: €13,961 million
2. **Depreciation & Amortization**: €7,205 million
3. **Impairment Loss (reversal)**: €1,140 million (positive adjustment as it's a reversal)
4. **Write-off of Tangible/Intangible Assets**: €599 million
5. **Gains on Disposal of Non-current Assets**: -€524 million (negative, so subtract)

**FFO = 13,961 + 7,205 + 1,140 + 599 - 524 = €22,381 million**

### Net Debt Calculation:

**Net Debt = Total Debt - Cash & Cash Equivalents**

1. **Short-term Borrowings**: €4,446 million
2. **Current Portion of Long-term Borrowings**: €3,097 million
3. **Long-term Borrowings**: €19,374 million
4. **Total Debt = 4,446 + 3,097 + 19,374 = €26,917 million**

5. **Cash & Cash Equivalents**: €10,155 million

**Net Debt = 26,917 - 10,155 = €16,762 million**

### FFO / Net Debt Ratio:

**Ratio = 22,381 / 16,762 = 1.336**

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