# Calculation of Net Debt / EBITDA Ratio for 2022 and 2023

## Step 1: Calculate EBITDA for both years

**EBITDA = Operating Income Before Share of Net Income Loss + D&A + Other Adjustments**

### 2022 (2021-01-01 to 2022-01-01):
- Operating Income Before Share of Net Income Loss: €1,212.7M
- Operating Depreciation Amortization Provisions And Impairment Losses: €2,117.2M
- EBITDA 2022 = €1,212.7M + €2,117.2M = **€3,329.9M**

### 2023 (2022-01-01 to 2023-01-01):
- Operating Income Before Share of Net Income Loss: €2,206.3M
- Operating Depreciation Amortization Provisions And Impairment Losses: €3,178.6M
- EBITDA 2023 = €2,206.3M + €3,178.6M = **€5,384.9M**

## Step 2: Calculate Net Debt for both years

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

### 2022-01-01:
- Current Financial Liabilities (excl. concession): €8,624.3M
- Noncurrent Financial Liabilities (excl. concession): €10,462.5M
- Current Lease Liabilities: €410.6M
- Noncurrent Lease Liabilities: €1,298.1M
- Total Debt = €20,795.5M
- Cash and Cash Equivalents: €10,518.7M
- **Net Debt 2022 = €20,795.5M - €10,518.7M = €10,276.8M**

### 2023-01-01:
- Current Financial Liabilities (excl. concession): €6,521.4M
- Noncurrent Financial Liabilities (excl. concession): €19,692.1M
- Current Lease Liabilities: €496.5M
- Noncurrent Lease Liabilities: €1,656.2M
- Total Debt = €28,366.2M
- Cash and Cash Equivalents: €9,012.2M
- **Net Debt 2023 = €28,366.2M - €9,012.2M = €19,354.0M**

## Step 3: Calculate Net Debt / EBITDA Ratio

- **Net Debt / EBITDA 2022 = €10,276.8M / €3,329.9M = 3.09x**
- **Net Debt / EBITDA 2023 = €19,354.0M / €5,384.9M = 3.59x**

## Step 4: Calculate the gap (deterioration)

- **Gap = 3.59x - 3.09x = 0.50x**

## Analysis

The gap of 0.50x is **greater than 0.3x**, indicating the leverage ratio has deteriorated year-on-year. This deterioration reflects:
1. Significant increase in total debt (€28.4B vs €20.8B)
2. Decrease in cash position (€9.0B vs €10.5B)
3. While EBITDA improved substantially, the net debt growth outpaced it

This deterioration is consistent with Veolia's 2022 SUEZ acquisition activities, which increased leverage despite operational improvements.

<answer>Deteriorating</answer>