# Net Debt / EBITDA Ratio Calculation for EDP, S.A. (2022)

## Understanding S&P Methodology

S&P's Net Debt / EBITDA calculation uses:
- **Net Debt** = Total Debt - Cash and Cash Equivalents
- **EBITDA** = Operating earnings before Interest, Taxes, Depreciation, and Amortization

## Data Extraction for 2022 (fiscal year ending 2022-01-01)

### Net Debt Calculation:

**Total Debt Components:**
- Long-term Borrowings: 15,299,588,000 EUR
- Current Borrowings and Current Portion of Noncurrent Borrowings: 1,518,348,000 EUR
- **Total Debt = 16,817,936,000 EUR**

**Less: Cash and Cash Equivalents:**
- Cash and Cash Equivalents (2022-01-01): 3,222,409,000 EUR

**Net Debt = 16,817,936,000 - 3,222,409,000 = 13,595,527,000 EUR**

### EBITDA Calculation:

**Starting from Operating Profit:**
- Profit before Provisions, Amortisation, Impairment, Financial Income/Expenses, Income Tax, and CESE: 4,523,539,000 EUR

**This figure includes:**
- Joint Ventures and Associates contribution: 239,429,000 EUR (already included)
- Other Income: 927,450,000 EUR (already included)
- Operating expenses: already included

**Add back: Depreciation, Amortisation and Impairment Loss:**
- 1,979,007,000 EUR

**EBITDA = 4,523,539,000 + 1,979,007,000 = 6,502,546,000 EUR**

## Net Debt / EBITDA Ratio

**Ratio = 13,595,527,000 / 6,502,546,000 = 2.09**

<answer>2.09</answer>