# FFO / Net Debt Ratio Analysis for ENEL SPA (2022)

## S&P FFO Methodology

FFO (Funds From Operations) according to S&P's methodology is calculated as:
**FFO = Net Income + Depreciation & Amortization + Impairment Losses - Impairment Reversals**

## Step 1: Identify Required Components (2022-01-01 to 2023-01-01)

From the financial data:

1. **Net Income (Profit Loss Attributable to Owners of Parent)**: €1,682,000,000

2. **Depreciation & Amortization & Impairment**: €7,447,000,000
   - This is "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss"

3. **Impairment Loss on Trade Receivables**: €1,278,000,000
   - This represents impairment losses that should be added back

## Step 2: Calculate FFO

FFO = Net Income + D&A + Impairment Losses
FFO = €1,682M + €7,447M + €1,278M
FFO = **€10,407 million**

## Step 3: Calculate Net Debt

From the balance sheet as of 2023-01-01:

**Total Debt:**
- Long-term Borrowings: €68,191,000,000
- Current Portion of Long-term Borrowings: €2,835,000,000
- Short-term Borrowings: €18,392,000,000
- **Total Debt = €89,418 million**

**Less: Cash and Cash Equivalents:**
- Cash and Cash Equivalents: €11,041,000,000

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

## Step 4: Calculate FFO / Net Debt Ratio

FFO / Net Debt = €10,407M / €78,377M = **0.1327** or approximately **0.13**

<answer>0.13</answer>