# Net Debt / EBITDA Ratio Calculation for Veolia Environnement (2022)

## Reasoning

The S&P methodology for Net Debt / EBITDA requires:

### 1. Calculate Net Debt (as of 2022-01-01)

**Gross Debt components:**
- Noncurrent Financial Liabilities (excluding concession): 10,462.5 M EUR
- Current Financial Liabilities (excluding concession): 8,624.3 M EUR
- Current Lease Liabilities: 410.6 M EUR
- Noncurrent Lease Liabilities: 1,298.1 M EUR
- Bank Overdrafts: 241.9 M EUR

**Total Gross Debt** = 10,462.5 + 8,624.3 + 410.6 + 1,298.1 + 241.9 = **21,037.4 M EUR**

**Less: Cash and equivalents** = 10,518.7 M EUR

**Net Debt** = 21,037.4 - 10,518.7 = **10,518.7 M EUR**

### 2. Calculate EBITDA for 2022 (fiscal year 2021-01-01 to 2022-01-01)

Using the S&P approach, starting from Operating Income:

**Operating Income before Share of Equity Accounted Entities** = 1,212.7 M EUR

**Add back:**
- Operating Depreciation, Amortization, Provisions & Impairment = 2,117.2 M EUR
- Share of Net Income from Joint Ventures = 74.1 M EUR (operating portion)
- Share of Net Income from Associates = 30.8 M EUR (operating portion)

**EBITDA** = 1,212.7 + 2,117.2 + 74.1 + 30.8 = **3,434.8 M EUR**

### 3. Calculate Ratio

Net Debt / EBITDA = 10,518.7 / 3,434.8 = **3.06x**

<answer>3.06</answer>