# FFO / Net Debt Ratio Calculation for ITALGAS 2022 (S&P Methodology)

## S&P FFO (Funds From Operations) Methodology

FFO according to S&P is calculated as:
**FFO = Net Income + Depreciation & Amortization + Impairment Losses - Gains on Asset Sales + Changes in Working Capital adjustments**

More specifically, the standard S&P formula is:
**FFO = Net Income + D&A + Non-cash charges - Non-operating gains**

## Data Extraction for 2022 (Period: 2021-01-01 to 2022-01-01)

1. **Net Income (Profit Loss)**: 383,420,000 EUR
   
2. **Depreciation & Amortization**: 444,387,000 EUR
   
3. **Impairment Losses**: 864,000 EUR
   
4. **Gains on Disposal of Non-current Assets**: 3,553,000 EUR (negative adjustment)
   
5. **Share-based Payments (non-cash)**: 3,375,000 EUR

## FFO Calculation for 2022

FFO = 383,420,000 + 444,387,000 + 864,000 - 3,553,000 + 3,375,000
**FFO = 828,493,000 EUR**

## Net Debt Calculation for 2022

According to S&P methodology:
**Net Debt = Total Financial Debt - Cash & Cash Equivalents - Current Financial Assets**

As of 2022-01-01 (end of 2022):
- Short Term Financial Liabilities: 591,188,000 EUR
- Long Term Financial Liabilities: 5,785,707,000 EUR
- **Total Financial Debt = 6,376,895,000 EUR**

- Cash and Cash Equivalents: 1,391,763,000 EUR
- Current Financial Assets Excluding Other: 5,120,000 EUR
- **Total Liquidity = 1,396,883,000 EUR**

**Net Debt = 6,376,895,000 - 1,396,883,000 = 4,980,012,000 EUR**

## FFO / Net Debt Ratio

**FFO / Net Debt = 828,493,000 / 4,980,012,000 = 0.1664 or 16.64%**

Rounding to two decimal places: **0.17** or **16.7%**

<answer>0.17</answer>