# FFO / Net Debt Ratio Calculation for ACEA SpA (2022)

## Reasoning

### FFO (Funds From Operations) Calculation - S&P Methodology

S&P's FFO formula is:
**FFO = Net Income + Depreciation & Amortization + Impairment Losses - Gains on Asset Sales ± Other adjustments**

From the data for 2022-01-01 to 2023-01-01:
- Net Income (Profit Loss): €311,160,000
- Depreciation & Amortization (Ammortamenti E Accantonamenti): €625,799,000
- Impairment Loss (adjusted): €113,370,000
- Gains/Losses on Disposals: €0

**FFO = 311,160 + 625,799 + 113,370 = €1,050,329,000**

### Net Debt Calculation

Net Debt = Total Debt - Cash and Cash Equivalents

**Total Debt Components (from 2023-01-01 balance sheet, end of 2022 fiscal year):**
- Noncurrent Financial Liabilities: €4,722,263,000
- Current Financial Liabilities: €619,418,000
- **Total Debt = €5,341,681,000**

**Cash and Cash Equivalents (end of 2022 fiscal year):**
- Disponibilità Liquide: €680,820,000

**Net Debt = €5,341,681,000 - €680,820,000 = €4,660,861,000**

### FFO / Net Debt Ratio

**Ratio = €1,050,329,000 / €4,660,861,000 = 0.225**

This represents a relatively modest FFO-to-Net Debt ratio, indicating that ACEA generates annual FFO sufficient to cover approximately 22.5% of its net debt position, which is typical for capital-intensive utility companies.

<answer>0.225</answer>