# FFO / Net Debt Ratio Calculation for ENGIE (2022)

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

FFO is typically calculated as:
**FFO = Net Income + Depreciation & Amortization + Impairment Losses - Gains on Asset Sales**

From the 2022 data (2022-01-01 to 2023-01-01):
- Profit Loss Attributable to Owners of Parent: €216,000,000
- Depreciation Amortization And Provisions: €5,187,000,000
- Impairment Loss (reversal): €2,774,000,000
- Less: Gains on disposals (reflected in investing activities, small): approximately €0 (net impact minimal)

**FFO = 216 + 5,187 + 2,774 = €8,177,000,000**

## Step 2: Calculate Net Debt

Net Debt = Total Borrowings - Cash and Cash Equivalents

From 2023-01-01 (end of 2022):
- Long-term Borrowings: €28,083,000,000
- Current Borrowings and Current Portion of Noncurrent Borrowings: €12,508,000,000
- Total Borrowings: €28,083 + €12,508 = €40,591,000,000
- Cash and Cash Equivalents: €15,570,000,000

**Net Debt = 40,591 - 15,570 = €25,021,000,000**

## Step 3: Calculate FFO / Net Debt Ratio

**Ratio = 8,177 / 25,021 = 0.327**

This ratio of approximately 0.33 indicates that ENGIE's annual FFO covers about one-third of its net debt, suggesting moderate leverage relative to operational cash generation capacity.

<answer>0.33</answer>