To estimate the leverage trend, use:

**Net Debt / EBITDA**

Where:

- **Net Debt = Financial liabilities − Cash and cash equivalents**
- Financial liabilities include:
  - Noncurrent financial liabilities
  - Current financial liabilities
- EBITDA is given as **Beneficio Bruto De Explotacion EBITDA**

### 2022 ratio

Using 2022-01-01 balance sheet and 2021 income statement:

- Noncurrent financial liabilities = €15,114m
- Current financial liabilities = €1,698m
- Cash and cash equivalents = €3,965m
- Net Debt = 15,114 + 1,698 − 3,965 = **€12,847m**
- EBITDA = **€3,529m**

Net Debt / EBITDA = 12,847 / 3,529 = **3.64x**

### 2023 ratio

Using 2023-01-01 balance sheet and 2022 income statement:

- Noncurrent financial liabilities = €13,999m
- Current financial liabilities = €2,302m
- Cash and cash equivalents = €3,985m
- Net Debt = 13,999 + 2,302 − 3,985 = **€12,316m**
- EBITDA = **€4,954m**

Net Debt / EBITDA = 12,316 / 4,954 = **2.49x**

### Year-on-year change

- Change = 2.49x − 3.64x = **−1.15x**

The ratio decreased by more than 0.3x, so leverage is **improving**.

<answer>Improving</answer>