I'll work through this step-by-step, analyzing Bouygues' financial data and applying S&P's methodology.

## Step 1: Identify Relevant Industry for Bouygues

Bouygues is a French diversified conglomerate with operations in:
- Construction (Bouygues Construction, Colas)
- Telecommunications (Bouygues Telecom)
- Media (TF1)
- Real estate development

This is a **general corporate** entity that doesn't fit neatly into any of the specific industry methodologies provided (Regulated Utilities, Oil & Gas E&P, Unregulated Power and Gas, or Transportation Infrastructure). Therefore, I'll apply the general corporate baseline formulas.

## Step 2: Estimate 2021 Adjusted_EBITDA

First, let me reconstruct EBITDA for 2021 from the income statement data.

**2021 Income Statement Items (2021-01-01 to 2022-01-01):**
- Revenue From Contracts With Customers: 37,589,000,000 EUR
- Other Revenue: 55,000,000 EUR
- **Total Revenue: 37,644,000,000 EUR**

Expenses:
- Raw Materials And Consumables Used: 16,641,000,000 EUR
- Employee Benefits Expense: 8,497,000,000 EUR
- Services Expense: 8,614,000,000 EUR
- Tax Expense Other Than Income Tax Expense: 597,000,000 EUR
- Depreciation And Amortisation Expense: 2,065,000,000 EUR
- Depreciation Rightofuse Assets: 353,000,000 EUR
- Impairment Loss Reversal: 405,000,000 EUR (this is a reversal, so negative expense = income)
- Changes In Inventories: -99,000,000 EUR (negative = expense reduction/income)
- Other Income Recurring: 2,280,000,000 EUR
- Other Expense By Nature Recurring: 960,000,000 EUR

**Operating Profit (Profit Loss From Operating Activities):** 1,733,000,000 EUR

Let me verify: Revenue - main expenses + other income - other expenses = operating profit

Actually, let me use the reported operating profit and work backwards:
- Profit Loss From Operating Activities (2021): 1,733,000,000 EUR
- Profit Loss From Operating Activities Recurring (2021): 1,693,000,000 EUR

To get EBITDA, I need to add back depreciation and amortization:
- Depreciation And Amortisation Expense: 2,065,000,000 EUR
- Depreciation Rightofuse Assets: 353,000,000 EUR

**EBITDA = Operating Profit + Depreciation & Amortization**

For 2021:
- Using recurring operating profit: 1,693,000,000 + 2,065,000,000 + 353,000,000 = 4,111,000,000 EUR
- Using total operating profit: 1,733,000,000 + 2,065,000,000 + 353,000,000 = 4,151,000,000 EUR

I'll use the recurring measure as it's more normalized: **EBITDA ≈ 4,111,000,000 EUR**

Now applying adjustments per formula:
- adjustment_leases: Add back lease-related depreciation already included (the 353M is already added back)
- nonrecurring_losses - nonrecurring_gains: 
  - Other Operating Income Non Recurring: 115,000,000 EUR
  - Other Operating Expense Non Recurring: 75,000,000 EUR
  - Net nonrecurring = 115M - 75M = 40,000,000 EUR (gain)

So: Adjusted_EBITDA = 4,111,000,000 + 0 - 40,000,000 = **4,071,000,000 EUR**

Wait - let me reconsider. The recurring operating profit already excludes nonrecurring items. So if I start from recurring operating profit, I don't need to adjust for nonrecurring. Let me recalculate:

From recurring operating profit: 1,693,000,000
Add D&A: 2,065,000,000 + 353,000,000 = 2,418,000,000
**EBITDA = 4,111,000,000 EUR**

For S&P purposes, they may want to include nonrecurring items if they're one-time. But actually, S&P typically uses reported EBITDA with adjustments. Let me use a cleaner approach.

Looking at S&P methodology - they typically adjust for leases (add back lease depreciation, treat leases as debt-like), and normalize for nonrecurring items.

Actually, for general corporate, the standard approach is:
- Start with operating profit
- Add back depreciation and amortization (including lease depreciation)

Let me use: **EBITDA = 4,151,000,000 EUR** (from total operating profit) or about **4,111,000,000 EUR** recurring.

I'll use **4,111,000,000 EUR** as base, then add adjustments.

For lease adjustments: S&P typically capitalizes operating leases. The lease depreciation (353M) is already added back to get EBITDA, but for debt adjustment, we need to capitalize leases. For EBITDA, the lease expense (not depreciation) is the right starting point. Under IFRS 16, lease depreciation and interest replace lease expense. For S&P, they often use "operating lease adjustment" which adds back lease depreciation and subtracts lease interest... actually this gets complex.

For simplicity and following the baseline formula: Adjusted_EBITDA = EBITDA + adjustment_leases + nonrecurring_losses - nonrecurring_gains ± other adjustments

For 2021, nonrecurring: expense 75M, income 115M, so net gain of 40M. If we want to normalize, subtract this gain.

Adjusted_EBITDA = 4,151,000,000 - 40,000,000 = **4,111,000,000 EUR** (or just use recurring-based EBITDA)

Let me use **4,111,000,000 EUR** as the 2021 Adjusted_EBITDA.

## Step 3: Estimate 2021 FFO

FFO = Adjusted_EBITDA - cash_interest - cash_taxes

From the data:
- Interest Expense (2021): 176,000,000 EUR
- Interest Expense On Lease Liabilities (2021): 52,000,000 EUR
- Total interest expense: 228,000,000 EUR

But we need **cash interest paid**, not accrual. Looking at cash flow:
- Interest Paid Classified As Financing Activities (2021): 207,000,000 EUR
- Cost Of Net Debt (2021): 155,000,000 EUR (this is net interest expense)

Actually, from cash flow statement: "Adjustments For Cost Of Net Debt And Interest Expense On Lease Obligations" = 207,000,000 EUR for 2021. And "Interest Paid Classified As Financing Activities" = 207,000,000 EUR.

So cash interest paid = 207,000,000 EUR

For cash taxes:
- Income Tax Expense Continuing Operations (2021): 432,000,000 EUR (accrual)
- Income Taxes Paid Classified As Operating Activities (2021): 397,000,000 EUR (cash)

FFO = 4,111,000,000 - 207,000,000 - 397,000,000 = **3,507,000,000 EUR**

Wait - I need to check if FFO should use cash or accrual taxes. S&P FFO typically uses cash taxes paid. Let me verify: "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" = 3,165,000,000 EUR for 2021.

This is: Operating cash flow before working capital - interest - taxes = 3,165M

From cash flow: "Cash Flows From Used In Operating Activities" = 3,576,000,000 EUR for 2021.

Let me recalculate FFO more carefully. S&P defines FFO as:
FFO = Net income + D&A + deferred taxes + other non-cash items - nonrecurring gains/losses... 

Actually, simpler: FFO = Adjusted EBITDA - cash interest - cash taxes

Using: Adjusted_EBITDA = 4,111,000,000
Cash interest = 207,000,000
Cash taxes = 397,000,000

FFO = 4,111,000,000 - 207,000,000 - 397,000,000 = **3,507,000,000 EUR**

But let me cross-check with "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" = 3,165,000,000. This seems to be after some adjustments. 

Actually, looking more carefully: this is "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" which equals operating cash flow before working capital changes.

From the data: "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" (2021) = 3,165,000,000

Then "Increase Decrease In Working Capital" = -204,000,000 (negative means working capital increase, cash outflow)
Then "Cash Flows From Used In Operating Activities" = 3,576,000,000

Wait, 3,165 - (-204) = 3,369, not 3,576. Let me re-read.

Actually: "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" = 3,165,000,000
"Adjustments For Cost Of Net Debt And Interest Expense On Lease Obligations" = 207,000,000 (added back)
So before interest: 3,165,000,000 + 207,000,000 = 3,372,000,000? No wait, this is already after interest.

Let me trace through: 
- Start with profit before tax: 1,305,000,000 + 432,000,000 = 1,737,000,000? No, profit after tax is 1,305M, tax is 432M, so PBT = 1,737M.

Actually, let me use a different approach. S&P FFO is typically:
Net income + D&A + deferred taxes + other non-cash - nonrecurring items

Or: Operating cash flow + interest paid - working capital changes (if we want pre-working capital)

From cash flow statement, the standard S&P FFO is:
FFO = Cash from operations before working capital changes

This equals: "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" + income taxes paid + interest paid... no wait.

Let me re-read the items:
- "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" = 3,165,000,000 (2021)

This seems to be: Operating profit + D&A + other non-cash - cash interest - cash taxes = 3,165M

Then add back working capital change: -204M (increase in working capital, so cash outflow)
Result: 3,165M - 204M = 2,961M? But reported operating cash flow is 3,576M.

Hmm, let me check: 3,165M + adjustments... Actually "Increase Decrease In Working Capital" = -204,000,000. If this is negative, it means working capital increased (cash used).

But 3,165 - 204 = 2,961, not 3,576. There's a gap. Let me look at other adjustments.

Actually, looking at the full cash flow reconstruction:
- "Adjustments For Undistributed Profits Of Investments Accounted For Using Equity Method" = 154,000,000
- "Adjustments For Dividend Income From Non Controlling Interests" = 6,000,000
- "Adjustments For Provisions And Adjustments For Depreciation And Amortisation Expense And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 1,980,000,000
- "Adjustments For Depreciation And Other Adjustments Right Of Use Assets" = 353,000,000
- "Adjustments For Losses Gains On Disposal Of Noncurrent Assets" = -314,000,000
- "Adjustments For Income Tax Expense" = 432,000,000
- "Other Adjustments To Reconcile Profit Loss" = -34,000,000

Sum of adjustments to profit: 154 + 6 + 1,980 + 353 - 314 + 432 - 34 = 2,557,000,000

Profit: 1,305,000,000
Plus adjustments: 2,557,000,000
= 3,862,000,000 (operating cash flow before working capital and interest/tax)

Then: "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" = 3,165,000,000

Difference: 3,862 - 3,165 = 697M. This should equal interest paid + taxes paid = 207 + 397 = 604M. Not quite matching.

Actually, "Income Taxes Paid Classified As Operating Activities" = 397,000,000. And interest paid = 207,000,000. Total = 604,000,000.

3,862 - 604 = 3,258, not 3,165. There's still a gap of 93M. Possibly due to lease interest or other items.

Let me just use the standard formula: FFO = Adjusted EBITDA - cash interest - cash taxes

Adjusted EBITDA = 4,111,000,000
Cash interest = 207,000,000 (from "Interest Paid Classified As Financing Activities")
Cash taxes = 397,000,000

FFO = 4,111,000,000 - 207,000,000 - 397,000,000 = **3,507,000,000 EUR**

Or, if we use the "Cash Flow After Cost Of Net Debt..." as a base: 3,165,000,000. This already includes some interest and tax effects. Let me add back the interest and tax to get to a pre-interest, pre-tax operating cash flow proxy, then subtract cash interest and cash taxes.

Actually, I think "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" means after these costs. So to get FFO (which is before interest and after taxes... no, FFO is funds from operations, typically after interest and taxes but before working capital).

Standard S&P FFO = Net income + D&A + deferred taxes + other non-cash - nonrecurring gains + interest expense (for pre-interest FFO, use "FFO before interest")

Actually, let me use the most common S&P definition:
**FFO = Net income + D&A + deferred tax + other non-cash items - nonrecurring gains + interest expense**

Or for "cash-based" FFO: Operating cash flow before working capital changes - interest paid (if starting from pre-interest)...

I think the cleanest is: FFO = Adjusted EBITDA - cash interest - cash taxes = **3,507,000,000 EUR**

But let me also check using the reported "Cash Flows From Used In Operating Activities" = 3,576,000,000. This includes working capital changes. FFO should exclude working capital. 

"Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" = 3,165,000,000. This seems to be the right starting point for FFO-like measure, but it includes some lease-related items.

Actually, I realize I need to be more careful. Let me use:
FFO = Profit Loss + D&A + other non-cash - nonrecurring items (or use recurring profit)

Recurring operating profit: 1,693,000,000
Add D&A: 2,418,000,000
= 4,111,000,000 (this is EBITDAR or EBITDA)

Then FFO = EBITDA - cash interest - cash taxes = 4,111 - 207 - 397 = 3,507,000,000

I'll use **FFO_2021 = 3,507,000,000 EUR**

## Step 4: Estimate 2021 Adjusted_Debt

Adjusted_Debt = reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items - eligible_cash

From balance sheet (2022-01-01, which is start of 2022 = end of 2021):
- Longterm Borrowings: 5,805,000,000 EUR
- Current Borrowings And Current Portion Of Noncurrent Borrowings: 1,324,000,000 EUR
- Current Overdrafts And Short Term Borrowings From Banks: 351,000,000 EUR
- **Total reported debt = 5,805 + 1,324 + 351 = 7,480,000,000 EUR**

Leases:
- Noncurrent Lease Liabilities: 1,473,000,000 EUR
- Current Lease Liabilities: 362,000,000 EUR
- **Total lease liabilities = 1,835,000,000 EUR**

For S&P, we typically capitalize leases (already on balance sheet under IFRS 16). The debt already includes these. But wait - under IFRS 16, lease liabilities are already included in debt. Let me check if the borrowings include leases or if leases are separate.

Looking at the structure: "Longterm Borrowings" and "Noncurrent Lease Liabilities" are separate line items. So total debt-like obligations = 7,480 + 1,835 = 9,315,000,000 EUR.

But actually, for S&P Adjusted Debt, we want to include all debt-like items. Under IFRS 16, leases are already capitalized. The question is whether to add them back or if they're already in "reported debt."

Looking at the line items, leases are shown separately from borrowings. So:
Reported debt (borrowings) = 7,480,000,000
Leases = 1,835,000,000

For S&P, they may treat leases as debt-like and add them. But under IFRS 16, they're already on the balance sheet. The "reported debt" in S&P terms typically includes all interest-bearing debt, which would include lease liabilities.

Let me check: "Net Debt" is reported as 941,000,000 EUR for 2022-01-01 (end 2021).

Net Debt = Total debt - cash = 941,000,000
Cash And Cash Equivalents = 6,501,000,000

So Total debt = 941 + 6,501 = 7,442,000,000 EUR? But this doesn't match my 7,480 + 1,835 = 9,315.

Hmm, let me recalculate. "Net Debt" 2022-01-01 = 941,000,000. But what is included in net debt?

Typically, Net Debt = Borrowings + Lease liabilities - Cash and cash equivalents - Other liquid assets

If Net Debt = 941M, and Cash = 6,501M, then total debt = 7,442M. But borrowings alone are 7,480M. This suggests leases might not be in net debt, or there's other netting.

Wait: "Cash And Cash Equivalents If Different From Statement Of Financial Position" 2022-01-01 = 6,150,000,000. This might be the cash used in net debt calculation.

7,480 (borrowings) + 1,835 (leases) - 6,150 = 3,165, not 941.

Let me check: maybe "Current Overdrafts" is not included, or there's other cash items.

Actually, looking more carefully: "Net Debt" 2022-01-01 = 941,000,000. This is a specific S&P-style measure already.

For our purposes, let me construct Adjusted Debt as:
- Longterm Borrowings: 5,805,000,000
- Current Borrowings And Current Portion Of Noncurrent Borrowings: 1,324,000,000
- Current Overdrafts And Short Term Borrowings From Banks: 351,000,000
- Noncurrent Lease Liabilities: 1,473,000,000
- Current Lease Liabilities: 362,000,000
- Other Current Financial Liabilities: 16,000,000 (small)
- Hedging Instrument Liabilities: 9,000,000 (small)

Total debt-like = 7,480 + 1,835 + 16 + 9 = 9,340,000,000

Less: Cash And Cash Equivalents: 6,501,000,000

Adjusted Debt = 9,340 - 6,501 = **2,839,000,000 EUR**? 

But this seems too low, and Net Debt is reported as 941M. Let me check if I'm double-counting.

Actually, the reported "Net Debt" = 941M suggests a much narrower definition. Perhaps "Net Debt" only includes certain borrowings.

Let me recalculate using S&P methodology more carefully. S&P Adjusted Debt typically includes:
- All short-term and long-term borrowings
- Capitalized lease obligations (present value)
- Pension deficits
- Guarantees, etc.
- Less: cash and liquid investments (typically 75% of cash if not readily accessible, but usually just subtract cash)

From the data, let me use:
Reported debt = Longterm Borrowings + Current Borrowings + Current Overdrafts = 5,805 + 1,324 + 351 = 7,480,000,000

But wait - are leases included in borrowings? Under IFRS 16, lease liabilities are separate from "borrowings." So total interest-bearing debt = 7,480 + 1,835 = 9,315,000,000.

However, the "Net Debt" figure of 941M is puzzling. Let me see: 9,315 - 6,501 = 2,814, not 941.

Unless... "Cash And Cash Equivalents" includes something else, or there's other netting.

Looking at "Cash And Cash Equivalents If Different From Statement Of Financial Position" = 6,150,000,000. Maybe this is the relevant cash figure for net debt?

9,315 - 6,150 = 3,165, still not 941.

Hmm, let me check if "Current Borrowings And Current Portion Of Noncurrent Borrowings" of 1,324 includes the 351 overdrafts, or if they're separate.

Actually, looking at the structure: "Current Borrowings And Current Portion Of Noncurrent Borrowings" = 1,324, and "Current Overdrafts And Short Term Borrowings From Banks" = 351. These seem separate.

Total borrowings: 5,805 + 1,324 + 351 = 7,480.

Plus leases: 1,473 + 362 = 1,835.

Total: 9,315.

Maybe "Net Debt" excludes leases? 7,480 - 6,501 = 979, close to 941. The difference might be other cash or debt items.

Actually 7,480 - 6,150 = 1,330, not close.

Let me try: 7,480 - 6,501 - some other items = 941. So other items = 7,480 - 6,501 - 941 = 38. Not clear.

I'll use my calculated total debt-like obligations minus cash for Adjusted Debt. But I need to be consistent.

For S&P purposes, let me use:
Adjusted_Debt = (Longterm Borrowings + Current Borrowings + Current Overdrafts + Lease Liabilities + Other debt-like) - Cash

= (5,805 + 1,324 + 351 + 1,473 + 362 + 16 + 9) - 6,501
= 9,340 - 6,501 = 2,839,000,000 EUR

But this seems too low for a company of this size. Let me reconsider.

Actually, I think I need to check if "Current Borrowings And Current Portion Of Noncurrent Borrowings" includes overdrafts. The separate line "Current Overdrafts And Short Term Borrowings From Banks" suggests it might not.

Let me try a different approach: use "Net Debt" as reported and work from there.

"Net Debt" 2022-01-01 = 941,000,000
This is defined as: Debt - Cash. If we can figure out what debt is included.

If Cash = 6,501,000,000, then Debt in net debt = 7,442,000,000.

But borrowings = 7,480,000,000. Close but not exact. Difference of 38M.

If Cash = 6,150,000,000 (the "if different" figure), then Debt = 7,091,000,000.

Hmm, neither matches exactly. Let me just use the full debt calculation and be consistent for both years.

Actually, I realize I should check if leases are already included in "Longterm Borrowings" or not. Under IFRS 16 presentation, they are typically shown separately. Looking at the line items, they are separate.

For S&P methodology, when they say "reported_debt + leases", they mean add capitalized operating leases (pre-IFRS 16). But under IFRS 16, leases are already capitalized. So "reported debt" might already include them, or we need to add them if they're separate.

Given the explicit separate line items, I'll treat "reported debt" as borrowings only, and add leases separately.

But actually, looking at standard S&P practice for IFRS 16 companies: they often use "lease-adjusted debt" which includes lease liabilities. So total debt = borrowings + leases.

Let me recalculate with a cleaner approach. I'll define:
- Gross debt = All borrowings + all lease liabilities + other financial liabilities
- Less: Cash and equivalents

For 2021 (2022-01-01):
- Longterm Borrowings: 5,805,000,000
- Current Borrowings And Current Portion Of Noncurrent Borrowings: 1,324,000,000
- Current Overdrafts And Short Term Borrowings From Banks: 351,000,000
- Noncurrent Lease Liabilities: 1,473,000,000
- Current Lease Liabilities: 362,000,000
- Other Current Financial Liabilities: 16,000,000
- Hedging Instrument Liabilities: 9,000,000

Gross debt = 9,340,000,000
Cash = 6,501,000,000
Net/Adjusted debt = 2,839,000,000

But this seems inconsistent with reported Net Debt of 941M. Unless the reported Net Debt uses a different definition (perhaps only certain borrowings, or includes other cash items).

Actually, let me check "Cash And Cash Equivalents If Different From Statement Of Financial Position" - this is 6,150,000,000 for 2022-01-01. The difference from 6,501 might be restricted cash or something.

For S&P, they typically subtract "eligible cash" which might be less than total cash. But without more info, I'll use total cash.

Given the discrepancy with reported Net Debt, let me try another approach: maybe "Net Debt" includes only non-current borrowings + current borrowings - cash, excluding leases and overdrafts?

5,805 + 1,324 - 6,501 = 628, not 941.

5,805 + 1,324 + 351 - 6,150 = 1,330, not 941.

Let me try: 5,805 + 1,324 - 6,150 = 979, close to 941! Difference of 38.

Maybe 5,805 + 1,324 - 6,188 = 941? Not sure.

I'll just use my comprehensive calculation and be consistent. For 2021:
**Adjusted_Debt = 9,340,000,000 - 6,501,000,000 = 2,839,000,000 EUR**

Actually, this seems too low. Let me reconsider whether leases should be added. Under IFRS 16, lease liabilities ARE debt. But maybe for S&P, they want to add operating lease expense × multiplier instead of capitalized amount?

Actually, I think for S&P under IFRS 16, they typically use the capitalized lease liability as reported. So my calculation should be correct.

But wait - let me check if "Longterm Borrowings" might already include some lease liabilities. The fact that "Noncurrent Lease Liabilities" is shown separately suggests it does not.

Let me proceed with **Adjusted_Debt_2021 = 2,839,000,000 EUR** and see if ratios make sense.

Actually, I realize this gives very low leverage, which might be correct for a construction company with high working capital. But let me double-check by using the reported Net Debt and adding back leases if needed.

Reported Net Debt = 941,000,000. If this is defined as Borrowings - Cash, then adding leases gives: 941 + 1,835 = 2,776,000,000. Close to my 2,839! The difference is 63M, possibly due to other items.

So Adjusted_Debt_2021 ≈ **2,800,000,000 EUR** (using reported net debt + leases)

Let me use: 941 + 1,835 = **2,776,000,000 EUR** or approximately **2,800,000,000 EUR**

I'll use **2,839,000,000 EUR** for consistency with my gross calculation, or simplify to **2,800,000,000 EUR**.

Actually, let me use the more precise: Gross debt 9,340 - Cash 6,501 = 2,839. But if reported Net Debt uses different cash figure...

Let me try with "Cash And Cash Equivalents If Different" = 6,150: 9,340 - 6,150 = 3,190, not matching.

I'll stick with **Adjusted_Debt_2021 = 2,839,000,000 EUR** or round to **2,800,000,000 EUR**.

Hmm, but I want to be more careful. Let me see if there's pension deficit or other items.

Looking through the data, I don't see explicit pension deficit. There are "Noncurrent Provisions" = 2,093,000,000 and "Current Provisions" = 1,330,000,000, but these are general provisions, not specifically pension.

For general corporate without specific pension info, I'll ignore pension deficit.

Let me use **Adjusted_Debt_2021 = 2,800,000,000 EUR** approximately.

## Step 5: Calculate 2021 Adjusted_Debt / Adjusted_EBITDA

= 2,800,000,000 / 4,111,000,000 = **0.68x**

Or using 2,839: 2,839 / 4,111 = **0.69x**

## Step 6: Calculate 2021 FFO / Adjusted_Debt

= 3,507,000,000 / 2,800,000,000 = **1.25x** or 125%

Or 3,507 / 2,839 = **1.24x**

These ratios seem very strong. Let me verify if my debt calculation is correct by checking if I should include more items or use gross debt.

Actually, for S&P, "Adjusted Debt" typically doesn't subtract cash for the leverage ratio, or they use "Net Debt" (debt minus cash). The ratio "Adjusted_Debt / Adjusted_EBITDA" usually uses gross adjusted debt or net debt depending on S&P's specific approach.

Looking at S&P methodology more carefully: they use "Debt" for leverage ratios, and "FFO/Debt" for coverage. "Debt" can be gross or net depending on context. For "FFO/Debt", they typically use gross debt. For "Debt/EBITDA", they might use net debt or gross debt.

Actually, standard S&P metrics are:
- Debt/EBITDA (using gross debt)
- FFO/Debt (using gross debt)
- EBITDA/Interest
- etc.

But sometimes they use "Net Debt" for leverage.

Let me recalculate with gross debt (no cash subtraction):
Adjusted_Debt_gross = 9,340,000,000

Then:
Debt/EBITDA = 9,340 / 4,111 = **2.27x**
FFO/Debt = 3,507 / 9,340 = **0.38x** or 38%

This seems more reasonable for a BBB-type credit.

Actually, looking at S&P's typical presentation: "FFO to debt" uses gross debt. "Debt to EBITDA" also uses gross debt. But "net debt" is sometimes used for leverage.

For consistency with the formula provided: "Adjusted_Debt = (reported_debt + leases + ...) - eligible_cash"

This explicitly subtracts cash! So my original calculation with net debt is correct per the instructions.

But the ratios seem very strong. Let me check if Bouygues actually has very strong credit metrics.

Bouygues is rated BBB by S&P typically, with stable outlook. BBB companies often have Debt/EBITDA around 2-3x and FFO/Debt around 15-25%.

My net debt ratios (0.68x and 125%) are too strong for BBB. My gross debt ratios (2.27x and 38%) are more reasonable.

Perhaps the formula's "eligible_cash" is not total cash, or there's restricted cash. Or perhaps S&P uses gross debt for these ratios despite the formula.

Let me re-read the formula: "Adjusted_Debt = (reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items) - eligible_cash"

"eligible_cash" might be less than total cash. S&P typically only subtracts "available cash" which might exclude restricted cash, cash in non-core subsidiaries, etc.

Given the reported "Net Debt" = 941M, which implies very little net debt, Bouygues might indeed have very strong metrics. But this seems inconsistent with a BBB rating.

Actually, let me check: "Net Debt" 2022-01-01 = 941,000,000. This is very low. But "Net Debt" 2023-01-01 = 7,440,000,000, much higher!

So net debt increased dramatically in 2022. This is important for the trend.

For 2021, using reported Net Debt + leases (if not already included):
If Net Debt = 941M, and this includes borrowings net of cash but not leases, then adjusted debt = 941 + 1,835 = 2,776M.

But maybe Net Debt already includes leases? Then adjusted debt = 941M.

Given the big jump in 2022 Net Debt from 941M to 7,440M, something changed significantly. This could be an acquisition.

Looking at the data: Goodwill increased from 7,446M to 12,626M, and total assets from 44,642M to 60,595M. This suggests a major acquisition in 2022.

Also "Cash Flows Used In Obtaining Control Of Subsidiaries Classified As Investing Activities" = 6,269M in 2022 vs 382M in 2021. Major acquisition!

This acquisition was likely debt-financed, explaining the net debt increase.

For consistency, let me use a simpler approach that matches S&P's typical "Net Debt" calculation:
- Use reported Net Debt, and add back leases if they're not included
- Or use: Gross borrowings + leases - cash

Given the explicit lease line items, I'll assume Net Debt (941M) excludes leases, so:
Adjusted_Debt = 941 + 1,835 = 2,776,000,000 EUR for 2021.

But wait, if Net Debt = 941M is defined as (Borrowings - Cash), and leases are separate, then:
Borrowings - Cash = 941, so Borrowings = 941 + 6,501 = 7,442M. But my borrowings calculation was 7,480M. Close.

Actually 7,480 - 6,501 = 979, not 941. Small difference of 38M.

Let me use: Adjusted_Debt = Net Debt (as reported) + Lease Liabilities = 941 + 1,835 = **2,776,000,000 EUR**

Or if leases are already in Net Debt: **941,000,000 EUR**

Given the 2022 Net Debt of 7,440M with leases of 2,107+498 = 2,605M, if leases were added to 2022: 7,440 + 2,605 = 10,045M. This seems very high.

Actually, looking at 2023-01-01 balance sheet: Longterm Borrowings = 11,586M, Current Borrowings = 1,361M, Overdrafts = 418M. Total borrowings = 13,365M. Leases = 2,107 + 498 = 2,605M. Total gross = 15,970M. Cash = 5,736M. Net = 10,234M. But reported Net Debt = 7,440M.

Difference: 10,234 - 7,440 = 2,794M. This is close to lease liabilities of 2,605M. So maybe Net Debt includes leases partially, or there's other netting.

Actually 10,234 - 2,605 = 7,629, close to 7,440. Difference of 189M.

Hmm, let me try: 13,365 (borrowings) - 5,736 (cash) = 7,629. Close to 7,440. Difference 189M.

Or with different cash: 13,365 - 5,318 (the "if different" figure) = 8,047, not close.

I think the reported Net Debt uses a specific definition. Let me just use the reported Net Debt figures and add leases if needed, or use gross debt minus cash consistently.

For simplicity and consistency with the big picture (trend from 2021 to 2022), let me use:

**2021: Adjusted_Debt = Gross debt - Cash = 9,340 - 6,501 = 2,839M** (or use 2,776M from reported net debt + leases)

Actually, I'll use the most straightforward: total borrowings + total leases - cash.

For 2021: 7,480 + 1,835 - 6,501 = **2,814,000,000 EUR**

For 2022: 13,365 + 2,605 - 5,736 = **10,234,000,000 EUR**

Wait, this uses 2023-01-01 for 2022. Let me be careful with dates.

The data labels:
- "2022-01-01" = start of 2022, which is end of 2021
- "2023-01-01" = start of 2023, which is end of 2022

So for fiscal year 2021 (ended Dec 31, 2021), use 2022-01-01 balance sheet.
For fiscal year 2022 (ended Dec 31, 2022), use 2023-01-01 balance sheet.

Recalculating:

**2021 (using 2022-01-01 data):**
- Longterm Borrowings: 5,805
- Current Borrowings And Current Portion Of Noncurrent Borrowings: 1,324
- Current Overdrafts And Short Term Borrowings From Banks: 351
- Noncurrent Lease Liabilities: 1,473
- Current Lease Liabilities: 362
- Other Current Financial Liabilities: 16
- Hedging Instrument Liabilities: 9
- Total gross debt-like: 9,340
- Cash And Cash Equivalents: 6,501
- Adjusted_Debt_2021 = 9,340 - 6,501 = **2,839,000,000 EUR**

**2022 (using 2023-01-01 data):**
- Longterm Borrowings: 11,586
- Current Borrowings And Current Portion Of Noncurrent Borrowings: 1,361
- Current Overdrafts And Short Term Borrowings From Banks: 418
- Noncurrent Lease Liabilities: 2,107
- Current Lease Liabilities: 498
- Other Current Financial Liabilities: 13
- Hedging Instrument Liabilities: 4
- Total gross debt-like: 15,987
- Cash And Cash Equivalents: 5,736
- Adjusted_Debt_2022 = 15,987 - 5,736 = **10,251,000,000 EUR**

This shows a massive increase from 2,839M to 10,251M, which aligns with the acquisition.

Now let me recalculate 2021 ratios with these numbers:

## Recalculating 2021 Ratios

Adjusted_EBITDA_2021 = **4,111,000,000 EUR** (from earlier)
Adjusted_Debt_2021 = **2,839,000,000 EUR**

Adjusted_Debt / Adjusted_EBITDA = 2,839 / 4,111 = **0.69x**

FFO_2021 = **3,507,000,000 EUR**
FFO / Adjusted_Debt = 3,507 / 2,839 = **1.24x** or 124%

These are very strong ratios, but let me proceed. The trend will be what matters.

Actually, I want to double-check my EBITDA calculation. Let me recalculate more carefully.

For 2021 (2021-01-01 to 2022-01-01):
- Profit Loss From Operating Activities: 1,733,000,000
- Add: Depreciation And Amortisation Expense: 2,065,000,000
- Add: Depreciation Rightofuse Assets: 353,000,000

EBITDA = 1,733 + 2,065 + 353 = 4,151,000,000

But this includes nonrecurring items. For adjusted EBITDA, S&P typically normalizes.

Nonrecurring in 2021:
- Other Operating Income Non Recurring: 115,000,000
- Other Operating Expense Non Recurring: 75,000,000
- Net: +40,000,000 (gain)

To normalize, subtract this net gain:
Adjusted_EBITDA = 4,151 - 40 = **4,111,000,000 EUR**

Or start from recurring operating profit:
- Profit Loss From Operating Activities Recurring: 1,693,000,000
- Add D&A: 2,418,000,000
- Adjusted_EBITDA = 4,111,000,000 EUR ✓

Good.

For FFO, let me recheck:
- Cash interest paid: from "Interest Paid Classified As Financing Activities" = 207,000,000
- Cash taxes paid: "Income Taxes Paid Classified As Operating Activities" = 397,000,000

FFO = 4,111 - 207 - 397 = **3,507,000,000 EUR**

But wait, is this correct? Let me check "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" = 3,165,000,000.

This is lower than my FFO. Why? Because this "cash flow" measure starts from profit and adds back certain items, not from EBITDA.

Actually, let me verify: 3,165 + 207 (interest) + 397 (taxes) = 3,769, not 4,111. There's a difference of 342M.

This difference might be due to lease interest (52M) and other items. Let me check: "Cost Of Net Debt" = 155M, "Interest Expense On Lease Liabilities" = 52M, total interest expense = 207M. This matches cash interest paid of 207M.

So "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" = 3,165M is after 207M interest and 397M taxes, meaning before these it was 3,769M.

But my EBITDA is 4,111M. Difference: 4,111 - 3,769 = 342M. This could be working capital changes or other items included in the reconciliation.

Actually, looking at the cash flow statement more carefully, the 3,165M is after various adjustments to profit, not starting from EBITDA. It includes changes in provisions, gains/losses on disposal, etc.

For S&P FFO, the standard is: EBITDA - cash interest - cash taxes ± working capital changes? No, FFO is before working capital.

Actually, I think my formula FFO = EBITDA - cash interest - cash taxes is correct for a simplified FFO measure. But S&P's exact FFO might differ.

Let me use: FFO = "Cash Flow After Cost Of Net Debt Interest Expense On Lease Obligations And Income Taxes Paid" + adjustments... 

Actually, this 3,165M seems to be the right "operating cash flow before working capital changes" or close to it. Let me use this as FFO proxy, or add back interest to get a pre-interest measure.

If 3,165M is after interest and taxes, then pre-interest, pre-tax operating cash flow = 3,165 + 207 + 397 = 3,769M. But this is not FFO.

Standard S&P FFO = Net income + D&A + deferred taxes + other non-cash - nonrecurring gains/losses + interest expense (if using pre-interest FFO) or = Funds from operations after interest.

For "FFO/Debt", S&P uses FFO after interest but before working capital. So:
FFO = Net income + D&A + deferred taxes + other non-cash items

For 2021:
- Net income: 1,305,000,000
- D&A: 2,418,000,000
- Deferred tax: ? Not explicit, but "Adjustments For Income Tax Expense" = 432,000,000 (add back expense)
- Other non-cash: various items

From cash flow reconciliation:
- Profit: 1,305
- Add D&A and impairment: 1,980
- Add lease depreciation: 353
- Add income tax expense: 432
- Less gain on disposal: -314
- Add undistributed profits adjustment: 154
- Add dividend income adjustment: 6
- Other adjustments: -34
- Total adjustments: 2,557

Operating cash flow before working capital and interest/tax = 1,305 + 2,557 = 3,862

Then subtract interest (207) and taxes (397) = 3,258? But reported "Cash Flow After..." = 3,165. Difference of 93.

Maybe lease interest of 52 is included in the 207, or there's other netting.

I'll stick with my formula: **FFO_2021 = 3,507,000,000 EUR**

Actually, let me try another approach. S&P sometimes defines FFO as:
FFO = Operating cash flow - working capital changes - interest paid (if starting from post-interest) or + interest expense (if pre-interest)

From "Cash Flows From Used In Operating Activities" = 3,576,000,000 for 2021.
This includes working capital changes of -204,000,000 (meaning +204 used? No, "Increase Decrease In Working Capital" = -204,000,000, and this is an adjustment in the cash flow statement).

Actually, in standard cash flow format:
Cash from operations = Profit + adjustments ± working capital changes

If "Increase Decrease In Working Capital" = -204,000,000, this typically means working capital increased (cash outflow), so it's subtracted.

So: 3,862 (before WC) - 204 (WC increase) - interest - taxes = 3,576? Let's check: 3,862 - 204 - 207 - 397 = 3,054, not 3,576.

Hmm, the numbers don't align perfectly. Let me just use the reported operating cash flow and work backwards, or use my formula.

Given time constraints, I'll use:
- Adjusted_EBITDA_2021 = 4,111,000,000
- FFO_2021 = 3,507,000,000 (EBITDA - cash interest - cash taxes)
- Adjusted_Debt_2021 = 2,839,000,000

## Now for 2022 (using 2023-01-01 balance sheet and 2022 income/cash flow)

## Step 7: Estimate 2022 Adjusted_EBITDA

From 2022-01-01 to 2023-01-01:
- Profit Loss From Operating Activities: 1,872,000,000
- Profit Loss From Operating Activities Recurring: 1,962,000,000
- Depreciation And Amortisation Expense: 2,228,000,000
- Depreciation Rightofuse Assets: 446,000,000

EBITDA from total operating profit: 1,872 + 2,228 + 446 = 4,546,000,000
EBITDA from recurring: 1,962 + 2,228 + 446 = 4,636,000,000

Nonrecurring items:
- Other Operating Income Non Recurring: 93,000,000
- Other Operating Expense Non Recurring: 183,000,000
- Net: -90,000,000 (loss)

To normalize (remove nonrecurring): add back net loss of 90M, or use recurring base.

Adjusted_EBITDA = 4,546 + 90 = **4,636,000,000 EUR** (or just use recurring-based: 4,636)

Let me verify: 1,962 (recurring operating profit) + 2,228 + 446 = 4,636,000,000 ✓

**Adjusted_EBITDA_2022 = 4,636,000,000 EUR**

## Step 8: Estimate 2022 FFO

Cash interest: "Interest Paid Classified As Financing Activities" = 260,000,000
Cash taxes: "Income Taxes Paid Classified As Operating Activities" = 518,000,000

FFO = 4,636 - 260 - 518 = **3,858,000,000 EUR**

## Step 9: Estimate 2022 Adjusted_Debt

From 2023-01-01 balance sheet:
- Longterm Borrowings: 11,586,000,000
- Current Borrowings And Current Portion Of Noncurrent Borrowings: 1,361,000,000
- Current Overdrafts And Short Term Borrowings From Banks: 418,000,000
- Noncurrent Lease Liabilities: 2,107,000,000
- Current Lease Liabilities: 498,000,000
- Other Current Financial Liabilities: 13,000,000
- Hedging Instrument Liabilities: 4,000,000

Total gross debt-like: 11,586 + 1,361 + 418 + 2,107 + 498 + 13 + 4 = 15,987,000,000
Cash And Cash Equivalents: 5,736,000,000

Adjusted_Debt_2022 = 15,987 - 5,736 = **10,251,000,000 EUR**

## Step 10: Calculate 2022 Adjusted_Debt / Adjusted_EBITDA

= 10,251 / 4,636 = **2.21x**

## Step 11: Calculate 2022 FFO / Adjusted_Debt

= 3,858 / 10,251 = **0.376x** or 37.6%

## Step 12: Classify Year-on-Year Credit Trend

**Signal 1: Leverage (Adjusted_Debt / Adjusted_EBITDA)**
- 2021: 0.69x
- 2022: 2.21x
- Change: 2.21 - 0.69 = **+1.52x**

Threshold: ≥ +0.2x is Deteriorating
**Signal 1: DETERIORATING** (massively, +1.52x >> +0.2x)

**Signal 2: Cash-flow coverage (FFO / Adjusted_Debt)**
- 2021: 1.24x (or 124%)
- 2022: 0.376x (or 37.6%)
- Change: 0.376 - 1.24 = **-0.864** or -86.4 percentage points

In decimal terms: 0.376 - 1.24 = **-0.864**

Threshold: ≤ -0.03 is Deteriorating
**Signal 2: DETERIORATING** (massively, -0.864 << -0.03)

## Conclusion

Both signals agree: **DETERIORATING**

The deterioration is driven by a major acquisition in 2022 (spending 6,269M on obtaining control of subsidiaries), which was largely debt-financed. This caused:
- Net debt to increase dramatically from ~2.8B to ~10.3B
- Leverage ratio to more than triple from 0.69x to 2.21x
- FFO coverage to collapse from 124% to 38%

This is a clear and material deterioration in credit metrics.

<answer>Deteriorating</answer>