I need to calculate the Net Debt / EBITDA ratio for 2022 using S&P methodology. First, let me identify the key components: **EBITDA Calculation (S&P methodology typically starts with EBIT/Operating Profit and adds back D&A):** From the income statement for 2022 (period 2022-01-01 to 2023-01-01): - Profit Loss From Operating Activities (EBIT): 11,193,000,000 EUR - Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss: 7,447,000,000 EUR Wait - I need to check if the operating profit already includes or excludes depreciation. Looking at the structure: - Operating Expense includes depreciation, so Profit Loss From Operating Activities should be after depreciation. Let me verify by reconstructing: - Revenue: 140,517,000,000 - Operating Expense: 131,689,000,000 - Profit Loss From Operating Activities: 11,193,000,000 Check: 140,517 - 131,689 = 10,828... but we also have Net Results From Commodity Contracts of 2,365,000,000 Actually, looking more carefully at typical income statement structure: Revenue + Other Income - Operating Expenses + Net Results From Commodity Contracts = Operating Profit Let me verify: 140,517 + 4,864 - 131,689 + 2,365 = 16,057? That doesn't match 11,193. Actually, looking at the data more carefully - "Operating Expense" likely includes all operating costs. The Profit Loss From Operating Activities of 11,193,000,000 is the EBIT. For S&P EBITDA, we typically add back depreciation and amortization to EBIT: EBITDA = EBIT + Depreciation & Amortization (excluding impairment if it's already in EBIT) From the data: - Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss: 7,447,000,000 But wait - this includes impairment loss reversal. Let me check if there's separate impairment. Looking at: "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Trade Receivables" = 1,278,000,000 The main D&A line item includes "Impairment Loss Reversal Of Impairment Loss" in its title, suggesting it includes impairment. For S&P methodology, EBITDA = EBIT + D&A (where D&A includes impairment of fixed assets/intangibles, but not working capital items like trade receivables). Actually, standard S&P Global methodology defines EBITDA as: - EBIT + Depreciation & Amortization expense The line "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 7,447,000,000 seems to be the total D&A and impairment. However, looking more carefully at typical S&P approach, they usually take Operating Profit and add back "Depreciation and Amortization" specifically. The impairment of trade receivables (1,278M) is typically not added back as it's considered part of operating working capital. Let me use: EBITDA = Profit Loss From Operating Activities + Depreciation Amortisation And Impairment Loss Reversal... But wait - this would double count if depreciation is already deducted in getting to operating profit. Standard calculation: EBITDA = EBIT + D&A expense (where D&A is the expense amount, not net of reversals) Actually, let me think about this more carefully. The "Depreciation Amortisation And Impairment Loss Reversal..." line is likely the total charge. If we add this to EBIT, we get EBITDA. EBITDA = 11,193,000,000 + 7,447,000,000 = 18,640,000,000 EUR But I need to check if this includes the impairment reversal. The name says "Impairment Loss Reversal Of Impairment Loss" which suggests it's net. If there's a reversal, this would reduce the expense. Actually, re-reading: "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" - this is 7,447M. The "Impairment Loss Reversal" is 1,278M separately. Hmm, let me reconsider. The 7,447M likely includes depreciation, amortization, and net impairment. For S&P methodology, let me check if they adjust for impairments. Typically, S&P calculates "Adjusted EBITDA" which may exclude certain items, but standard EBITDA includes D&A and recurring impairments. Let me proceed with: EBITDA = 11,193 + 7,447 = 18,640 million EUR **Net Debt Calculation:** Debt items (2023-01-01, i.e., end of 2022): - Longterm Borrowings: 68,191,000,000 - Shortterm Borrowings: 18,392,000,000 - Current Portion Of Longterm Borrowings: 2,835,000,000 Total Debt = 68,191 + 18,392 + 2,835 = 89,418,000,000 EUR Cash and Cash Equivalents (2023-01-01): 11,041,000,000 EUR Net Debt = 89,418 - 11,041 = 78,377,000,000 EUR Wait - I need to check if there are other debt-like items or if cash equivalents need adjustment. Looking at the cash flow data, there's also "Cash And Cash Equivalents If Different From Statement Of Financial Position" = 11,543,000,000 for 2023-01-01. But the balance sheet shows "Cash And Cash Equivalents" = 11,041,000,000. I'll use the balance sheet figure. Also, I should check for other items S&P might include in debt: - Current Derivative Financial Liabilities: 16,141,000,000 (these are derivatives, not debt) - Noncurrent Derivative Financial Liabilities: 5,895,000,000 Derivatives are typically not included in debt for Net Debt/EBITDA. Let me verify my debt calculation: - Longterm Borrowings: 68,191 - Shortterm Borrowings: 18,392 - Current Portion Of Longterm Borrowings: 2,835 Total Debt = 89,418 million EUR Net Debt = 89,418 - 11,041 = 78,377 million EUR Net Debt / EBITDA = 78,377 / 18,640 = 4.20 Wait, let me double-check the EBITDA calculation. I want to make sure I'm using the right approach. Actually, looking at this again - S&P Global Ratings methodology for "adjusted" metrics typically: - Starts with reported EBITDA - May make adjustments for non-recurring items, pension costs, etc. But for basic S&P methodology Net Debt/EBITDA: - EBITDA = EBIT + depreciation and amortization Let me verify EBIT. The "Profit Loss From Operating Activities" = 11,193M. This should be EBIT. But wait - is this before or after the "Net Results From Commodity Contracts"? Looking at typical structure, "Profit Loss From Operating Activities" is after all operating items including commodity contract results. Let me also check if there's any other income/expense to consider. The "Other Work Performed By Entity And Capitalised" = 3,415M - this is capitalized costs, already reflected in assets, not in P&L as expense. Actually, I realize I should double-check by looking at whether "Operating Expense" is the total operating cost or if there are other operating items. From the data, I can see components that sum to operating expense: - Raw Materials And Consumables Used: 96,896 - Services And Other Materials: 20,228 - Employee Benefits Expense: 4,570 - Depreciation Amortisation...: 7,447 - Other Expense By Nature: 4,685 - Less: Other Work Performed By Entity And Capitalised: -3,415 - Plus: Impairment Loss Reversal...: -1,278 (reversal, so negative expense) Let me try: 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 - 1,278 = 129,133 But Operating Expense is 131,689. There's a difference of 2,556. Hmm, let me check: 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 = 130,411. Then minus impairment reversal 1,278 = 129,133. Still not 131,689. Actually, the impairment reversal is a positive item (reducing expense), so if it's already included in the 7,447, then: 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 = 130,411 Still not 131,689. Difference is 1,278. Maybe the impairment reversal of 1,278 is separate from the 7,447. Let me try: 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 - 1,278 = 129,133 Or if impairment reversal is income (not offset against expense): 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 = 130,411 Still not matching 131,689. Let me try another approach. The difference between 131,689 and 130,411 is 1,278. Actually, looking at this - maybe the "Impairment Loss Reversal" is already netted in the 7,447 line, and the separate 1,278 is additional detail. Or perhaps there's something else. Regardless, for S&P methodology, I'll use the standard approach: EBITDA = EBIT + D&A. But I need to be careful about what D&A to add back. The 7,447 includes "Impairment Loss Reversal Of Impairment Loss". For S&P, typically: - Reported EBITDA = EBIT + depreciation and amortization + impairment losses on fixed assets and goodwill If the 7,447 includes impairment reversal (negative impairment), then adding it back to EBIT would be correct for getting to pre-impairment, pre-D&A earnings. Actually, I think I'm overcomplicating this. Standard practice: EBITDA = Operating Profit (EBIT) + Depreciation and Amortization expense Where D&A expense is the gross amount before any reversals. If 7,447 is the net amount including reversals, and there's a separate 1,278 reversal for receivables, then: - The 7,447 likely includes fixed asset D&A and any impairment/reversal thereof - The 1,278 is trade receivables impairment reversal (working capital item, not typically added back for EBITDA) For S&P EBITDA calculation, we add back D&A on fixed assets and intangibles. Trade receivables impairment is typically considered an operating working capital item and not added back. So EBITDA = 11,193 + 7,447 = 18,640 million EUR But wait - I need to check if 7,447 includes the 1,278 or not. Looking at the name: "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" - this seems to be a combined line. And separately: "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Trade Receivables" = 1,278 The separate line for trade receivables suggests the 7,447 is for other items (PPE, intangibles, etc.). Actually, re-reading: the 7,447 line doesn't specify "Trade Receivables" so it's likely for other assets. The 1,278 is specifically for trade receivables. So total impairment-related items = 7,447 + 1,278? No wait, the 7,447 already includes "Impairment Loss Reversal Of Impairment Loss" in its title. Hmm, the naming is confusing. Let me parse "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss": - This could mean: Depreciation + Amortization + (Impairment Loss - Reversal of Impairment Loss) Or it could mean: Depreciation + Amortization + Impairment Loss + Reversal of Impairment Loss (i.e., all of these things) Given the amount is positive 7,447, and it's an expense line, I think it's the net expense. For EBITDA, we want to add back the depreciation and amortization portion, and typically also impairment of fixed assets (as it's non-cash). But receivables impairment is more questionable. Actually, standard EBITDA adds back all D&A and impairment of tangible and intangible fixed assets. Receivables impairment is typically not added back as it's considered part of operations and working capital management. So if 7,447 = D&A + fixed asset impairment (net), then we add back 7,447. And 1,278 is receivables impairment reversal, which we don't add back (it's already in EBIT). EBITDA = 11,193 + 7,447 = 18,640 million EUR Let me also consider if there are other adjustments S&P makes. Looking at the data, I see "Share Of Profit Loss Of Associates And Joint Ventures" = 4 million. This is typically included in EBIT (it's after operating profit in some jurisdictions, but in this case, it seems "Profit Loss From Operating Activities" is before this item based on the sequence). Actually, looking at the sequence: - Profit Loss From Operating Activities: 11,193 - Then Financial items, Share of associates, etc. - Profit Loss Before Tax: 8,741 So 11,193 - financial expenses + financial income + share of associates + exchange differences = 8,741 Let me verify: 11,193 - 3,414 (financial exp derivatives) - 5,880 (finance costs) + 3,430 (finance income) + 3,118 (financial income derivatives) + 0.4 (share of associates) + 0.29 (exchange) = 8,741? 11,193 - 3,414 - 5,880 + 3,430 + 3,118 + 4 + 290 = 8,741. Yes! ✓ So the operating profit of 11,193 is indeed EBIT. Now for Net Debt, let me recalculate carefully: Debt (2023-01-01 = end of 2022): - Longterm Borrowings: 68,191 - Shortterm Borrowings: 18,392 - Current Portion Of Longterm Borrowings: 2,835 Total Debt = 89,418 Less: Cash and Cash Equivalents: 11,041 Net Debt = 78,377 But I should check if there are debt-like items. S&P sometimes includes: - Pension deficits (not apparent here) - Minority interest put options (not apparent) Also, should I include "Noncurrent Derivative Financial Liabilities" or "Current Derivative Financial Liabilities"? These are typically not debt but derivatives. However, if they represent hedges of debt, they might be considered. But standard Net Debt/EBITDA uses interest-bearing debt. Actually, looking more carefully - some practitioners include finance lease obligations. But I don't see separate finance lease data. Also, I need to check if there are related party borrowings included in the figures. The data shows "Related Parties Member" for some debt items: - Longterm Borrowings Related Parties: 774 - Shortterm Borrowings Related Parties: 14 - Current Portion Longterm Borrowings Related Parties: 110 These are already included in the totals (the main figures without "Related Parties Member" are the totals, or the related party is a subset). Let me verify: 68,191 total longterm includes 774 related party. So non-related party = 67,417. Total debt remains 89,418. Now, Net Debt / EBITDA = 78,377 / 18,640 = 4.204 Let me round to reasonable precision: 4.20 or 4.2 Actually, I want to double-check if S&P uses average or year-end net debt. Typically, for leverage ratios, S&P uses year-end debt and annual EBITDA. Sometimes they use "adjusted" EBITDA or average debt. For standard Net Debt/EBITDA, it's typically: - Numerator: Net debt at end of period - Denominator: EBITDA for the 12 months ended at that date So 78,377 / 18,640 = 4.20 But wait - let me reconsider if there are other cash items. The balance sheet shows: - Cash And Cash Equivalents: 11,041 - Current Derivative Financial Assets: 14,830 - Noncurrent Derivative Financial Assets: 3,970 Should derivatives be included? Typically no for standard Net Debt/EBITDA. But some variations include them if they're hedging debt. Also, "Other Current Financial Assets" = 13,753 and "Other Noncurrent Financial Assets" = 8,359. These might include things like loans to related parties, deposits, etc. Looking at related party financial assets: - Other Noncurrent Financial Assets Related Parties: 1,885 - Other Current Financial Assets Related Parties: 104 These are likely trade or loan receivables, not cash equivalents. For strict S&P Net Debt/EBITDA, we typically use: - Debt: Short-term borrowings + Current portion of long-term debt + Long-term debt - Less: Cash and cash equivalents - Sometimes less: Marketable securities (if liquid) I don't see separate marketable securities. The "Shortterm Investments Classified As Cash Equivalents" in the cash flow note = 78 million, which is likely included in the 11,041 Cash and Cash Equivalents. Actually, let me check: "Cash And Cash Equivalents Of Continuing Operations" = 11,041, and "Shortterm Investments Classified As Cash Equivalents" = 78. These might be separate or included. Looking at 2022-01-01: Cash And Cash Equivalents = 8,858, but Cash And Cash Equivalents Of Continuing Operations = 8,315 + Shortterm Investments = 88 + Disposal Group = 44 + Discontinued Operations = 543 = 8,990. Not exactly 8,858. Hmm, there's some complexity here. Let me use the main balance sheet figure: Cash And Cash Equivalents = 11,041. Actually, re-checking: for 2023-01-01, the components are: - Cash And Cash Equivalents Of Continuing Operations: 11,041 - Shortterm Investments Classified As Cash Equivalents: 78 - Cash And Cash Equivalents Classified As Part Of Disposal Group Held For Sale: 98 - Cash And Cash Equivalents Classified As Discontinued Operations: 326 Total = 11,041 + 78 + 98 + 326 = 11,543 And "Cash And Cash Equivalents If Different From Statement Of Financial Position" = 11,543 So the balance sheet "Cash And Cash Equivalents" = 11,041 is just continuing operations, and total cash is 11,543. For Net Debt calculation, should we use total cash or just continuing operations cash? Typically, if we're calculating Net Debt for the entire entity, we use total cash. But if there are restrictions (like cash in disposal groups), sometimes it's excluded. For S&P methodology, they typically use "readily available cash" which might exclude restricted cash. But cash in disposal groups and discontinued operations may or may not be readily available. Let me check standard practice. S&P Global typically uses: - Cash and cash equivalents (including restricted cash if it's not truly restricted) - Sometimes excludes cash in countries with transfer restrictions For simplicity and standard calculation, I'll use total cash: 11,543 Net Debt = 89,418 - 11,543 = 77,875 Net Debt / EBITDA = 77,875 / 18,640 = 4.178 Or if using continuing operations cash only: 78,377 / 18,640 = 4.205 Hmm, let me think about which is more appropriate. The disposal group and discontinued operations are still part of the entity at year-end. So total cash seems right. But actually, looking at this more carefully - if the disposal group is "held for sale", the cash might be restricted or about to be disposed of. S&P might exclude it or include it depending on timing. For a standard calculation, I'll use the balance sheet Cash and Cash Equivalents figure of 11,041, as this is the primary reported number. Net Debt = 89,418 - 11,041 = 78,377 Ratio = 78,377 / 18,640 = 4.2047... Let me also consider if I should use average debt or end-of-period debt. For leverage ratios, it's typically end-of-period. Actually, I want to re-verify my debt calculation. Are there any other debt items? Looking at liabilities: - Trade And Other Payables: 17,641 (not debt, trade payables) - Current Tax Liabilities: 1,623 (not debt) - Current Contract Liabilities: 1,775 (not debt, deferred revenue) - Other Current Liabilities: 11,713 (various accruals, not typically debt) So my debt items seem correct: borrowings only. Wait, I should also check "Other Current Financial Liabilities" = 853 and "Other Noncurrent Financial Liabilities" = 0 (in 2023) or 120 (in 2022). What are these? Could they be debt-like? For 2023-01-01: - Other Current Financial Liabilities: 853 - Related Parties: 1 This is small, and likely things like accrued interest or derivative payables, not principal debt. Also "Liabilities Included In Disposal Groups Classified As Held For Sale" = 3,360. This might include some debt, but it's already part of the total liabilities structure. Actually, looking at the balance sheet structure, this is presented separately from current and non-current liabilities. Wait, let me re-read the balance sheet structure: - Noncurrent Liabilities: 101,878 - Current Liabilities Other Than...: 72,298 - Liabilities Included In Disposal Groups: 3,360 - Total Liabilities: 177,536 Check: 101,878 + 72,298 + 3,360 = 177,536 ✓ But my debt calculation used items from within these categories. Let me check if the disposal group includes any debt. Actually, the debt items I used (Longterm Borrowings, Shortterm Borrowings, Current Portion Of Longterm Borrowings) are likely from the main categories, not from disposal groups. But I need to check if there are separate debt items in disposal groups. Looking at the data, I don't see specific "Borrowings" in disposal groups. The disposal group liabilities total 3,360, but no breakdown is given. For a conservative approach, if disposal group liabilities include debt, I might be understating debt. But without specific information, I'll proceed with identified borrowings. Actually, let me reconsider. The total liabilities include disposal group liabilities of 3,360. If these include debt, my calculation misses it. But typically, held-for-sale disposal groups are presented separately and include all their liabilities. Without knowing the debt component, I can't adjust. For standard calculation, I'll proceed with identified interest-bearing debt. One more check: are there lease liabilities? IFRS 16 requires lessees to recognize lease liabilities. Looking through the data, I don't see explicit "Lease Liabilities" lines. They might be included within "Other Noncurrent Financial Liabilities" or "Other Current Financial Liabilities", or possibly within borrowings. Actually, looking at the 2022-01-01 data: "Other Noncurrent Financial Liabilities" = 120. This is small. Given the data available, I'll proceed with my calculation. Net Debt = 89,418 - 11,041 = 78,377 million EUR EBITDA = 18,640 million EUR Ratio = 78,377 / 18,640 = 4.2047... Rounding to two decimal places: 4.20 But let me also try with total cash including disposal group and discontinued operations: Net Debt = 89,418 - 11,543 = 77,875 Ratio = 77,875 / 18,640 = 4.178... Difference is small (~0.03). I'll use the more standard balance sheet Cash and Cash Equivalents of 11,041. Actually, I want to reconsider one more thing. Should I use "Cash And Cash Equivalents" or "Cash And Cash Equivalents If Different From Statement Of Financial Position"? The latter is 11,543 and seems to be a more comprehensive measure. Looking at the note structure, "Cash And Cash Equivalents If Different From Statement Of Financial Position" suggests this is a reconciliation when there's a difference. For 2023-01-01, this is 11,543 vs 11,041 in the balance sheet. The difference is 502, which equals 78 + 98 + 326 = 502 (short-term investments + disposal group cash + discontinued operations cash). For Net Debt/EBITDA, using the more comprehensive cash figure might be appropriate if we want to show total liquidity. But standard practice varies. I'll use 11,041 as it's the primary balance sheet line item. Final calculation: Net Debt = 68,191 + 18,392 + 2,835 - 11,041 = 78,377 EBITDA = 11,193 + 7,447 = 18,640 Net Debt / EBITDA = 78,377 / 18,640 = 4.2047 Let me express this as 4.20 or perhaps more precisely 4.21 if rounding up. Actually, 78,377 / 18,640 = 4.20477... so 4.20 when rounded to two decimal places. But wait - I want to double-check one more thing. The EBITDA calculation. Should I use "Profit Loss From Operating Activities" or should I start from a different point? Some methodologies calculate EBITDA as: Revenue - Cost of Sales + D&A (i.e., gross profit + D&A + SG&A, or top-down approach) Or: Net Income + Interest + Taxes + D&A (bottom-up) Let me try bottom-up from Profit Loss Before Tax: PBT = 8,741 + Interest expense (Finance Costs) = 5,880 + Tax = 3,523 = EBIT = 18,144? Wait, that's not 11,193. Let me check. Actually, PBT includes financial income. So: EBT = EBIT - Net Interest Expense 8,741 = EBIT - (Financial expenses - Financial income) Financial expenses = 3,414 (derivatives) + 5,880 (finance costs) = 9,294 Financial income = 3,118 (derivatives) + 3,430 (finance income) = 6,548 Net financial expense = 9,294 - 6,548 = 2,746 Check: EBIT - Net Financial Expense + Other items = PBT 11,193 - 2,746 + 4 (associates) + 290 (exchange) = 8,741 ✓ So EBIT is indeed 11,193. For EBITDA: 11,193 + 7,447 = 18,640 But wait, I should verify if 7,447 is the right D&A to add. Let me check if there's any D&A in "Other Work Performed By Entity And Capitalised" or elsewhere. "Other Work Performed By Entity And Capitalised" = 3,415. This is capitalized costs, not expensed D&A. It's already excluded from operating expense (subtracted). So it's not part of D&A expense. Actually, I realize I should check if the 7,447 is already net of capitalization or if capitalization affects this. When costs are capitalized, they don't hit the P&L as expense. Instead, they go to the balance sheet and are depreciated later. So "Other Work Performed By Entity And Capitalised" of 3,415 reduces current period expense. But the 7,447 D&A is the expense from prior period capitalizations. These are separate flows. So my EBITDA calculation seems correct. One more verification: Let me see if I can cross-check EBITDA using another approach. From the cash flow statement: Cash Flows From Used In Operating Activities = 8,674 + Income Taxes Paid = 1,934 + Interest Paid (Finance Costs Paid) = 5,016 - Interest Received (Finance Income Received) = 2,622 - Working Capital Changes = 3,961 - Other adjustments = ? This gets complicated. Let me try: Operating Cash Flow before working capital and tax/interest changes ≈ EBITDA Actually, from cash flow: Cash Flows From Operating Activities = 8,674 Add back: Income Taxes Paid = 1,934 Add back: Finance Costs Paid = 5,016 Less: Finance Income Received = 2,622 Add back: Working Capital Increase = 3,961 (positive means increase in working capital, which reduced cash flow, so add back) Add back: Other adjustments for non-cash items = 927 = 8,674 + 1,934 + 5,016 - 2,622 + 3,961 + 0.927 = ... hmm, this doesn't work cleanly because working capital includes many items. Actually, the "Increase Decrease In Working Capital" = 3,961 is already in the operating cash flow. Let me think about this differently. OCF before working capital changes = 8,674 - 3,961 = 4,713? No, if working capital increase is positive, it means cash was used, so OCF before WC = 8,674 + 3,961? Actually, looking at the sign convention. "Increase Decrease In Working Capital" = 3,961. In cash flow statements, this is typically an adjustment. If it's positive, does it mean working capital increased (using cash) or decreased (providing cash)? Looking at components: - Decrease Increase In Inventories: -2,166 (inventories increased, used cash) - Decrease Increase In Trade Receivables: -2,783 + -242 = -3,025 (receivables increased, used cash) - Increase Decrease In Trade Payable: 1,333 + -1,272 = 61 (net, payables roughly flat) - Various other items Total working capital change = 3,961 positive. Given the components are mostly negative (using cash), a positive total might mean... actually let me check the sign convention. "Adjustments For Decrease Increase In Inventories" = -2,166. This is an adjustment to profit to get cash flow. If inventories increase, cash is used, so this adjustment is negative (reduces cash flow from profit). So "Increase Decrease In Working Capital" = 3,961 being positive suggests... hmm, this is the net adjustment. Let me check if this is added or subtracted. Actually, looking at typical cash flow presentation, these are all adjustments to net income. But here the starting point is operating profit, not net income. Let me try: OCF = EBIT + D&A - Working Capital changes - Taxes paid - Interest paid + Interest received + Other items This is getting messy. Let me stick with my direct EBITDA calculation. EBITDA = 18,640 Net Debt = 78,377 Ratio = 4.20 Actually, I want to make one final check. S&P sometimes uses "Adjusted EBITDA" which might exclude certain non-recurring items. Looking at the data: - Net Results From Commodity Contracts = 2,365 (included in operating profit) - Gains Losses On Net Monetary Position = 290 (this is below operating profit) - Share Of Profit Loss Of Associates = 4 (below operating profit) The commodity contract results are in operating profit. Are these recurring? For a utility like Enel, commodity contracts are part of normal operations (hedging energy prices). So they should be included. Also, I should check if there are any obvious non-recurring items in operating expenses. "Other Expense By Nature" increased from 1,968 to 4,685, which is significant. But without knowing the breakdown, I can't adjust. For a standard calculation, I'll proceed with reported figures. Final answer: 4.20 Wait, I want to double-check my arithmetic one more time: Net Debt = 68,191 + 18,392 + 2,835 - 11,041 68,191 + 18,392 = 86,583 86,583 + 2,835 = 89,418 89,418 - 11,041 = 78,377 ✓ EBITDA = 11,193 + 7,447 = 18,640 ✓ 78,377 / 18,640 = 4.20477... Rounded to two decimal places: 4.20 Or should I express as 4.2? Or perhaps more precision is needed? For financial ratios, typically two decimal places is standard. But let me see if I should round 4.20477 to 4.20 or 4.21. 4.20477... the third decimal is 4, so round down to 4.20. Actually, I want to reconsider using total cash one more time. The S&P methodology specifically: From S&P Global Corporate Methodology: "Debt" includes: short-term debt, current portion of long-term debt, long-term debt, and certain other debt-like items. "Cash and liquid investments" includes: cash, cash equivalents, and short-term liquid investments. The "Shortterm Investments Classified As Cash Equivalents" = 78 is likely already in cash equivalents or very liquid. "Cash And Cash Equivalents Classified As Part Of Disposal Group Held For Sale" = 98 - this is held for sale, so may not be readily available. "Cash And Cash Equivalents Classified As Discontinued Operations" = 326 - discontinued operations, may or may not be available. For conservative Net Debt, we might exclude disposal group and discontinued operations cash. So 11,041 + 78 = 11,119. Net Debt = 89,418 - 11,119 = 78,299 Ratio = 78,299 / 18,640 = 4.2006 ≈ 4.20 Very similar result. I'll stick with 4.20 as my final answer. 4.20