# Net Debt / EBITDA Ratio Calculation for ERG S.p.A. (2022)

## Step 1: Identify the relevant figures from the data

**For 2022 (fiscal year ending 2023-01-01):**

### EBITDA Calculation:
- Profit from Operating Activities (EBIT): 220,814,000 EUR
- Depreciation Expense: 176,689,000 EUR
- Amortisation Expense: 58,741,000 EUR
- Impairment Loss Reversal: -43,185,000 EUR (reversal reduces EBITDA)

**EBITDA = 220,814,000 + 176,689,000 + 58,741,000 - 43,185,000 = 413,059,000 EUR**

### Net Debt Calculation (S&P methodology):
Under S&P methodology, Net Debt = Total Debt - Cash and Cash Equivalents

**Total Debt:**
- Other Noncurrent Financial Liabilities: 1,751,255,000 EUR
- Other Current Financial Liabilities: 389,716,000 EUR
- Current Financial Liabilities At Fair Value Through Profit Or Loss: 76,644,000 EUR
- Noncurrent Financial Liabilities At Fair Value Through Profit Or Loss: 0 EUR
- Noncurrent Lease Liabilities: 150,955,000 EUR
- Current Lease Liabilities: 6,362,000 EUR

**Total Debt = 1,751,255,000 + 389,716,000 + 76,644,000 + 0 + 150,955,000 + 6,362,000 = 2,374,932,000 EUR**

**Less: Cash and Cash Equivalents: 860,352,000 EUR**

**Net Debt = 2,374,932,000 - 860,352,000 = 1,514,580,000 EUR**

## Step 2: Calculate the ratio

Net Debt / EBITDA = 1,514,580,000 / 413,059,000 = **3.67**

<answer>3.67</answer>