# Net Debt / EBITDA Ratio Calculation for Iberdrola SA (2022)

## Step 1: Identify the components needed

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

**Net Debt / EBITDA = (Total Debt - Cash) / EBITDA**

Where:
- **Total Debt** = Current Financial Liabilities + Noncurrent Financial Liabilities
- **Cash** = Cash and Cash Equivalents
- **EBITDA** = Earnings Before Interest, Taxes, Depreciation, and Amortization

## Step 2: Extract relevant data from the balance sheet (as of 2023-01-01, which is end of 2022)

**Current Financial Liabilities (2023-01-01):**
- 25,079,000,000 EUR

**Noncurrent Financial Liabilities (2023-01-01):**
- 44,216,000,000 EUR

**Total Debt = 25,079 + 44,216 = 69,295 million EUR**

**Cash and Cash Equivalents (2023-01-01):**
- 4,608,000,000 EUR

## Step 3: Calculate Net Debt

**Net Debt = 69,295 - 4,608 = 64,687 million EUR**

## Step 4: Extract EBITDA data (for the period 2022-01-01 to 2023-01-01)

From the data provided:
- **"Beneficio Bruto De Explotacion Ebitda" (2022-01-01 - 2023-01-01): 13,228,000,000 EUR**

This is directly stated in the report as EBITDA for 2022.

## Step 5: Calculate Net Debt / EBITDA

**Net Debt / EBITDA = 64,687 / 13,228 = 4.89**

## Verification

- Total Debt: 69,295 million EUR ✓
- Cash: 4,608 million EUR ✓
- Net Debt: 64,687 million EUR ✓
- EBITDA: 13,228 million EUR ✓
- Ratio: 4.89 ✓

<answer>4.89</answer>