# Analysis of Moody's Adjusted Leverage Trend for VERBUND AG (2022)

## Key Metrics Calculation

**For 2022 (2022-01-01):**

1. **Total Debt:**
   - Noncurrent Financial Liabilities: 1,834,155,000 EUR
   - Current Financial Liabilities: 1,462,453,000 EUR
   - Total Debt = 3,296,608,000 EUR

2. **EBITDA (2021-2022):** 1,578,959,000 EUR

3. **Leverage Ratio (2022):** 
   - 3,296,608 / 1,578,959 = 2.09x

**For 2023 (2023-01-01):**

1. **Total Debt:**
   - Noncurrent Financial Liabilities: 2,844,559,000 EUR
   - Current Financial Liabilities: 1,109,297,000 EUR
   - Total Debt = 3,953,856,000 EUR

2. **EBITDA (2022-2023):** 3,160,679,000 EUR

3. **Leverage Ratio (2023):**
   - 3,953,856 / 3,160,679 = 1.25x

## Year-over-Year Change Analysis

- **Leverage Ratio Change:** 2.09x → 1.25x
- **Improvement:** 0.84x (40% reduction)
- **Direction:** Clear improvement

## Supporting Factors

1. **Revenue Growth:** 4.78 billion → 10.35 billion EUR (+116%)
2. **EBITDA Growth:** 1.58 billion → 3.16 billion EUR (+100%)
3. **Debt Increase:** 3.30 billion → 3.95 billion EUR (+20%)
   - Debt growth (20%) significantly lower than EBITDA growth (100%)

4. **Equity Strengthening:**
   - Total Equity: 6.36 billion → 8.32 billion EUR (+31%)
   - Owners' Equity: 5.46 billion → 7.28 billion EUR (+33%)

5. **Operating Performance:**
   - Operating Profit: 1.27 billion → 2.63 billion EUR (+107%)
   - Net Profit: 985 million → 1.95 billion EUR (+98%)

## Conclusion

The leverage metrics show a **substantial improvement** from 2021-2022 to 2022-2023. The company's leverage ratio decreased from 2.09x to 1.25x, driven by exceptional EBITDA growth that far outpaced debt expansion. This improvement is supported by strong operational performance, revenue growth, and equity strengthening.

<answer>Improving</answer>