# Analysis of Moody's Adjusted Leverage Trend for ENI S.P.A. (2022)

## Key Leverage Metrics Calculation

### Debt Position
- **Total Debt (2022-01-01)**: Short-term borrowings (2,299M) + Current portion of long-term borrowings (1,781M) + Long-term borrowings (23,714M) = **27,794M EUR**
- **Total Debt (2023-01-01)**: Short-term borrowings (4,446M) + Current portion of long-term borrowings (3,097M) + Long-term borrowings (19,374M) = **26,917M EUR**
- **Change in Total Debt**: Decreased by 877M EUR (−3.2%)

### EBITDA Estimate (Operating Income + D&A)
- **2022**: Operating profit (12,341M) + Depreciation & Amortization (7,063M) = **19,404M EUR**
- **2023**: Operating profit (17,510M) + Depreciation & Amortization (7,205M) = **24,715M EUR**
- **Change in EBITDA**: Increased by 5,311M EUR (+27.4%)

### Leverage Ratio (Total Debt / EBITDA)
- **2022**: 27,794 / 19,404 = **1.43x**
- **2023**: 26,917 / 24,715 = **1.09x**
- **Improvement**: Decreased from 1.43x to 1.09x (−23.8% reduction)

### Equity Metrics
- **Equity (2022-01-01)**: 44,519M EUR
- **Equity (2023-01-01)**: 55,230M EUR
- **Increase**: 10,711M EUR (+24.1%)

### Debt-to-Equity Ratio
- **2022**: 27,794 / 44,519 = **0.624x**
- **2023**: 26,917 / 55,230 = **0.487x**
- **Improvement**: Decreased by 13.7 percentage points

## Cash Flow Assessment
- **Operating Cash Flow (2023)**: 17,460M EUR (vs. 12,861M in 2022, +35.7%)
- **Free Cash Flow**: Sufficient to cover capex and debt service

## Conclusion

ENI experienced **significant deleveraging** from 2022 to 2023:
- Absolute debt decreased by 877M EUR
- EBITDA surged 27.4% due to higher operating profits (energy price effects)
- Leverage ratio improved from 1.43x to 1.09x
- Equity strengthened substantially
- Operating cash flow increased substantially

This demonstrates **improving leverage metrics** driven by stronger operational performance and reduced debt levels.

<answer>Improving</answer>