# Net Debt / EBITDA Ratio Calculation for TenneT Holding B.V. (2022)

## Understanding S&P Methodology

The S&P methodology for Net Debt/EBITDA uses:
- **Net Debt** = Total Debt - Cash and Cash Equivalents
- **EBITDA** = EBIT + Depreciation & Amortization

## Step 1: Calculate Total Debt (as of 2022-01-01, which is end of 2021)

From the balance sheet at 2022-01-01:
- Long-term Borrowings: €12,366 million
- Short-term Borrowings: €1,339 million
- **Total Debt = €13,705 million**

## Step 2: Calculate Cash and Cash Equivalents (as of 2022-01-01)

From the balance sheet at 2022-01-01:
- **Cash and Cash Equivalents = €3,204 million**

## Step 3: Calculate Net Debt (as of 2022-01-01)

Net Debt = Total Debt - Cash
Net Debt = €13,705 - €3,204 = **€10,501 million**

## Step 4: Calculate EBITDA for the period 2021-01-01 to 2022-01-01

From the income statement for the period 2021-01-01 - 2022-01-01:
- Profit/Loss from Operating Activities (EBIT): €-275 million
- Depreciation and Amortisation Expense: €1,165 million
- **EBITDA = -275 + 1,165 = €890 million**

## Step 5: Calculate Net Debt / EBITDA Ratio

Net Debt / EBITDA = €10,501 / €890 = **11.80**

<answer>11.80</answer>