# Reasoning for FFO / Net Debt Ratio (2022)

## Step 1: Calculate FFO (Funds From Operations) for 2022

FFO is typically calculated as:
**FFO = Net Income + Depreciation & Amortization + Impairment losses - Gains/losses on asset disposals**

From the data for 2021-01-01 to 2022-01-01:
- Profit Loss: 404,000,000 EUR
- Dotacion Amortizacion Y Variacion De Provisiones (Depreciation, Amortization & Provisions): 714,000,000 EUR
- Impairment Loss Reversal: -67,000,000 EUR (this is a reversal, so we add back the negative)
- Other Gains Losses: -7,000,000 EUR

**FFO = 404 + 714 + 67 - 7 = 1,178,000,000 EUR**

(Note: The impairment reversal of -67M means there was a reversal of impairment, so the loss was reversed; we add it back as +67M)

## Step 2: Calculate Net Debt for 2022

Net Debt = Total Debt - Cash and Cash Equivalents

**Total Debt (2022-01-01):**
- Noncurrent Loans Received: 2,073,000,000 EUR
- Current Loans Received (Current Portion): 280,000,000 EUR
- Noncurrent Preferred Shares/Bonds: 2,364,000,000 EUR
- Current Preferred Shares/Bonds: 1,666,000,000 EUR
- Noncurrent Lease Liabilities: 430,000,000 EUR
- Current Lease Liabilities: 68,000,000 EUR

**Total Debt = 2,073 + 280 + 2,364 + 1,666 + 430 + 68 = 6,881,000,000 EUR**

**Cash and Cash Equivalents (2022-01-01):** 2,318,000,000 EUR

**Net Debt = 6,881 - 2,318 = 4,563,000,000 EUR**

## Step 3: Calculate FFO / Net Debt Ratio

**Ratio = FFO / Net Debt = 1,178 / 4,563 = 0.258**

<answer>0.26</answer>