# Analysis of Moody's Adjusted Leverage Trend for Acciona SA (2022)

## Key Leverage Metrics

Let me calculate the relevant leverage ratios for both years:

### 1. Total Debt (2022 vs 2021)

**2022-01-01 (End of 2022):**
- Noncurrent Loans: 2,624 million EUR
- Current Loans: 553 million EUR
- Noncurrent Bonds/Securities: 3,101 million EUR
- Current Bonds/Securities: 1,139 million EUR
- **Total Debt = 7,417 million EUR**

**2021-01-01 (End of 2021):**
- Noncurrent Loans: 2,073 million EUR
- Current Loans: 280 million EUR
- Noncurrent Bonds/Securities: 2,364 million EUR
- Current Bonds/Securities: 1,666 million EUR
- **Total Debt = 6,383 million EUR**

**Change: +1,034 million EUR or +16.2% increase**

### 2. EBITDA (Proxy using Operating Profit + D&A)

**2022 (2021-01-01 to 2022-01-01):**
- Operating Profit: 829 million EUR
- Depreciation & Amortization: 714 million EUR
- **EBITDA ≈ 1,543 million EUR**

**2023 (2022-01-01 to 2023-01-01):**
- Operating Profit: 1,334 million EUR
- Depreciation & Amortization: 762 million EUR
- **EBITDA ≈ 2,096 million EUR**

**Change: +553 million EUR or +35.8% increase**

### 3. Leverage Ratios

**Net Debt/EBITDA (2022):**
- Total Debt: 7,417 million EUR
- Cash: 2,318 million EUR
- Net Debt: 5,099 million EUR
- Ratio: 5,099 / 1,543 = **3.30x**

**Net Debt/EBITDA (2023):**
- Total Debt: 7,417 million EUR
- Cash: 2,360 million EUR
- Net Debt: 5,057 million EUR
- Ratio: 5,057 / 2,096 = **2.41x**

**Change: -0.89x or -27% improvement**

### 4. Equity & Solvency

**2022 Equity Ratio:** 5,557 / 19,603 = **28.3%**
**2023 Equity Ratio:** 6,304 / 22,595 = **27.9%**

## Key Observations

1. **EBITDA Growth:** Significant 35.8% improvement in EBITDA from 2022 to 2023, driven by strong revenue growth (38% YoY) and operational efficiency
2. **Debt Levels:** Absolute debt increased modestly from 6,383 to 7,417 million EUR
3. **Cash Position:** Slight increase in cash from 2,318 to 2,360 million EUR
4. **Leverage Ratio:** The key metric - Net Debt/EBITDA - improved substantially from 3.30x to 2.41x
5. **Operating Performance:** Operating profit jumped from 829 to 1,334 million EUR (+61%)
6. **Equity:** Equity increased from 5,557 to 6,304 million EUR (+13.4%)

## Conclusion

Despite an increase in absolute debt, Acciona's leverage position **improved significantly** in 2022/2023 due to:
- Substantial improvement in EBITDA generation
- Strong operational deleveraging
- Reduced leverage ratios (Net Debt/EBITDA declining from 3.30x to 2.41x)
- Growing equity base

The trend shows an **improving** leverage profile for 2022.

<answer>Improving</answer>