# Analysis of VINCI's Adjusted Leverage Trend for 2022

## Step 1: Calculate EBITDA for 2022 and 2023

**EBITDA = Operating Profit + D&A**

**For 2022 (2022-01-01 to 2023-01-01):**
- Profit from Operating Activities: €6,489M
- Depreciation & Amortization: €3,613M
- EBITDA 2022 = €6,489M + €3,613M = **€10,102M**

**For 2021 (2021-01-01 to 2022-01-01):**
- Profit from Operating Activities: €4,438M
- Depreciation & Amortization: €3,219M
- EBITDA 2021 = €4,438M + €3,219M = **€7,657M**

## Step 2: Calculate Net Debt for 2022 and 2023

**Net Debt = Total Borrowings + Lease Liabilities - Cash and Cash Equivalents**

**As of 2023-01-01 (Year-end 2022):**
- Noncurrent Bonds: €20,425M
- Noncurrent Other Borrowings: €3,205M
- Current Short-term Borrowings: €6,368M
- Noncurrent Lease Liabilities: €1,580M
- Current Lease Liabilities: €522M
- Total Gross Debt: €32,100M
- Cash and Cash Equivalents: €12,578M
- **Net Debt 2023 = €32,100M - €12,578M = €19,522M**

**As of 2022-01-01 (Year-end 2021):**
- Noncurrent Bonds: €22,212M
- Noncurrent Other Borrowings: €2,757M
- Current Short-term Borrowings: €5,769M
- Noncurrent Lease Liabilities: €1,574M
- Current Lease Liabilities: €524M
- Total Gross Debt: €32,836M
- Cash and Cash Equivalents: €11,065M
- **Net Debt 2022 = €32,836M - €11,065M = €21,771M**

## Step 3: Calculate Net Debt / EBITDA Ratios

**For 2022 (Year-end 2022, using 2023 closing data):**
- Net Debt / EBITDA = €19,522M / €10,102M = **1.93x**

**For 2021 (Year-end 2021, using 2022 closing data):**
- Net Debt / EBITDA = €21,771M / €7,657M = **2.84x**

## Step 4: Assess the Trend

**Year-on-year change:**
- Gap = 2.84x (2021) - 1.93x (2022) = **0.91x improvement**

Since the absolute change of 0.91x **exceeds the 0.3x threshold**, this represents a significant improvement in leverage. The Net Debt/EBITDA ratio has substantially decreased from 2.84x to 1.93x, indicating strengthening financial metrics driven by strong EBITDA growth and debt reduction.

<answer>Improving</answer>