# Reasoning for S&P's Adjusted Leverage Trend Analysis (2022)

## Step 1: Calculate EBITDA for both years

**EBITDA = Operating Profit + Depreciation & Amortization**

**2023 (2022-01-01 to 2023-01-01):**
- Operating Profit: 239,721,000 EUR
- Depreciation & Amortization: 249,276,000 EUR
- **EBITDA 2023 = 488,997,000 EUR**

**2022 (2021-01-01 to 2022-01-01):**
- Operating Profit: 218,863,000 EUR
- Depreciation & Amortization: 241,940,000 EUR
- **EBITDA 2022 = 460,803,000 EUR**

## Step 2: Calculate Net Debt for both years

**Net Debt = Total Borrowings - Cash and Cash Equivalents**

**2023 (as of 2023-01-01):**
- Long-term Borrowings: 1,695,362,000 EUR
- Current Borrowings: 638,944,000 EUR
- Total Borrowings: 2,334,306,000 EUR
- Cash and Cash Equivalents: 365,292,000 EUR
- **Net Debt 2023 = 1,969,014,000 EUR**

**2022 (as of 2022-01-01):**
- Long-term Borrowings: 2,390,852,000 EUR
- Current Borrowings: 375,221,000 EUR
- Total Borrowings: 2,766,073,000 EUR
- Cash and Cash Equivalents: 398,759,000 EUR
- **Net Debt 2022 = 2,367,314,000 EUR**

## Step 3: Calculate Net Debt / EBITDA ratio

**2023:**
- Net Debt / EBITDA = 1,969,014,000 / 488,997,000 = **4.03x**

**2022:**
- Net Debt / EBITDA = 2,367,314,000 / 460,803,000 = **5.14x**

## Step 4: Calculate the year-on-year change

**Change = 4.03x - 5.14x = -1.11x**

The gap is -1.11x (improvement of 1.11x), which is well below the threshold of ±0.3x.

## Conclusion

The Net Debt / EBITDA ratio improved significantly from 5.14x in 2022 to 4.03x in 2023, representing an improvement of 1.11x. Since the gap (1.11x) is substantially greater than 0.3x, the leverage trend is **Improving**.

<answer>Improving</answer>