# Net Debt / EBITDA Ratio Calculation for ACEA S.P.A. (2022)

## Step 1: Identify the Required Components

According to S&P methodology, Net Debt / EBITDA is calculated as:
**Net Debt / EBITDA = (Total Debt - Cash and Equivalents) / EBITDA**

## Step 2: Calculate EBITDA for 2022 (Year ending 2023-01-01)

EBITDA = Operating Profit + Depreciation & Amortization

From the data:
- Profit from Operating Activities (2022-01-01 to 2023-01-01): €565,851,000
- Adjustments for Depreciation and Amortization Expense: €594,636,000

**EBITDA = €565,851,000 + €594,636,000 = €1,160,487,000**

## Step 3: Calculate Total Debt

Total Debt includes both current and non-current financial liabilities:

**Current Financial Liabilities:**
- Other Current Financial Liabilities: €285,222,000 (as of 2022-01-01)

**Non-current Financial Liabilities:**
- Other Noncurrent Financial Liabilities: €4,791,979,000 (as of 2022-01-01)

**Total Debt = €285,222,000 + €4,791,979,000 = €5,077,201,000**

## Step 4: Calculate Cash and Cash Equivalents

From the data as of 2022-01-01:
- Cash and Cash Equivalents: €680,820,000

Note: The ending cash balance shows €680,820,000 (continuing operations) plus €12,374,000 (discontinued operations) = €693,193,000 net cash, but we use the primary figure of €680,820,000 for consistency.

## Step 5: Calculate Net Debt

**Net Debt = Total Debt - Cash**
**Net Debt = €5,077,201,000 - €680,820,000 = €4,396,381,000**

## Step 6: Calculate Net Debt / EBITDA Ratio

**Net Debt / EBITDA = €4,396,381,000 / €1,160,487,000 = 3.79**

<answer>3.79</answer>