# Net Debt / EBITDA Ratio Analysis for Bouygues (2022)

## Reasoning

### Step 1: Identify the components needed

For the S&P methodology, the Net Debt / EBITDA ratio uses:
- **Net Debt** = Total Debt - Cash and Cash Equivalents
- **EBITDA** = Earnings Before Interest, Taxes, Depreciation, and Amortization

### Step 2: Extract Net Debt for 2022

From the data provided:
- Net Debt at 2022-01-01: EUR 941 million
- Net Debt at 2023-01-01: EUR 7,440 million

The 2022 fiscal year (2022-01-01 to 2023-01-01) ends at 2023-01-01, so I'll use the net debt at year-end 2022, which is the 2023-01-01 figure: **EUR 7,440 million**

Verification:
- Long-term Borrowings (2023-01-01): EUR 11,586 million
- Current Borrowings (2023-01-01): EUR 1,361 million
- Current Overdrafts (2023-01-01): EUR 418 million
- Total Debt: EUR 13,365 million
- Less: Cash and Cash Equivalents (2023-01-01): EUR 5,736 million
- Net Debt: EUR 7,629 million (close to the stated EUR 7,440 million, accounting for other adjustments)

Using the stated figure: **Net Debt = EUR 7,440 million**

### Step 3: Calculate EBITDA for fiscal year 2022

From the income statement for 2022-01-01 to 2023-01-01:

- Profit Loss from Operating Activities: EUR 1,872 million
- Add: Depreciation and Amortisation Expense: EUR 2,228 million
- Add: Depreciation of Right-of-Use Assets: EUR 446 million
- Less: Other Operating Income (Non-Recurring): EUR 93 million
- Add: Other Operating Expense (Non-Recurring): EUR 183 million

**EBITDA = 1,872 + 2,228 + 446 - 93 + 183 = 4,636 million EUR**

Alternatively, using recurring operating profit:
- Recurring Operating Profit: EUR 1,962 million
- Add: Depreciation and Amortisation: EUR 2,228 million
- Add: Right-of-Use Asset Depreciation: EUR 446 million
- **EBITDA = 1,962 + 2,228 + 446 = 4,636 million EUR**

### Step 4: Calculate the ratio

Net Debt / EBITDA = 7,440 / 4,636 = **1.605**

<answer>1.61</answer>