# Reasoning for Net Debt / EBITDA Ratio Calculation (S&P Methodology)

## Step 1: Identify Required Components

According to S&P methodology, the Net Debt / EBITDA ratio is calculated as:
**Net Debt / EBITDA**

Where:
- **Net Debt** = Total Debt - Cash and Cash Equivalents
- **Total Debt** = Long-term Borrowings + Short-term Borrowings + Current Portion of Long-term Borrowings
- **EBITDA** = EBIT + Depreciation & Amortization

## Step 2: Extract Data for 2022 (as of January 1, 2023 reporting year-end)

### Debt Components (as of 2023-01-01, representing end of 2022):
- Long-term Borrowings: €68,191 million
- Short-term Borrowings: €18,392 million
- Current Portion of Long-term Borrowings: €2,835 million
- **Total Debt = 68,191 + 18,392 + 2,835 = €89,418 million**

### Cash (as of 2023-01-01, representing end of 2022):
- Cash and Cash Equivalents: €11,041 million

### Net Debt:
**Net Debt = 89,418 - 11,041 = €78,377 million**

## Step 3: Calculate EBITDA for 2022 (period 2022-01-01 to 2023-01-01)

### Method: EBIT + D&A

**EBIT (Operating Profit):**
- Profit/Loss from Operating Activities: €11,193 million

**Depreciation & Amortization & Impairment:**
From adjustments in cash flow statement for D&A:
- Adjustments for Depreciation and Amortisation Expense and Impairment Loss: €8,809 million

However, this includes impairment losses. The direct line item shows:
- "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" 2022-01-01 to 2023-01-01: €7,447 million

**EBITDA = EBIT + D&A = 11,193 + 7,447 = €18,640 million**

## Step 4: Calculate the Ratio

**Net Debt / EBITDA = 78,377 / 18,640 = 4.206**

<answer>4.21</answer>