# Analysis of S&P's Adjusted Leverage Trend for Iberdrola SA

## Step 1: Calculate EBITDA for 2022 and 2023

**For 2023 (year ending 2023-01-01):**
- Beneficio Bruto De Explotacion EBITDA: €13,228 million

**For 2022 (year ending 2022-01-01):**
- Beneficio Bruto De Explotacion EBITDA: €12,006 million

## Step 2: Calculate Net Debt for 2022 and 2023

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

**For 2023 (as of 2023-01-01):**
- Noncurrent Financial Liabilities: €44,216 million
- Current Financial Liabilities: €25,079 million
- Total Financial Debt: €69,295 million
- Less: Cash and Cash Equivalents: €4,608 million
- **Net Debt 2023: €64,687 million**

**For 2022 (as of 2022-01-01):**
- Noncurrent Financial Liabilities: €37,175 million
- Current Financial Liabilities: €21,297 million
- Total Financial Debt: €58,472 million
- Less: Cash and Cash Equivalents: €4,033 million
- **Net Debt 2022: €54,439 million**

## Step 3: Calculate Net Debt / EBITDA Ratios

**For 2023:**
Net Debt / EBITDA = €64,687 / €13,228 = **4.89x**

**For 2022:**
Net Debt / EBITDA = €54,439 / €12,006 = **4.53x**

## Step 4: Calculate Year-on-Year Gap

Gap = 4.89x - 4.53x = **0.36x**

## Step 5: Apply Stability Criteria

According to the definition:
- Stable: gap within ±0.3x
- Improving: gap < 0.3x
- Deteriorating: gap > 0.3x

The calculated gap of 0.36x exceeds the 0.3x threshold, indicating a **deterioration** in the leverage ratio year-on-year. The Net Debt / EBITDA ratio increased from 4.53x to 4.89x, reflecting a worsening leverage position despite higher EBITDA, due to the larger increase in net debt (€10.2 billion increase) relative to EBITDA growth (€1.2 billion increase).

<answer>Deteriorating</answer>