# S&P Adjusted Leverage Trend Analysis for ENGIE

## Step 1: Calculate Net Debt and EBITDA

### For 2022 (as of 2022-01-01):

**Borrowings:**
- Current Borrowings: 10,590 million EUR
- Long-term Borrowings: 30,458 million EUR
- Total Borrowings: 41,048 million EUR

**Cash:**
- Cash and Cash Equivalents: 13,890 million EUR

**Net Debt 2022:** 41,048 - 13,890 = **27,158 million EUR**

**EBITDA 2022:**
- Profit from Operating Activities: 1,127 million EUR
- Add back: Depreciation, Amortization & Provisions: 5,187 million EUR
- EBITDA 2022 = 1,127 + 5,187 = **6,314 million EUR**

**Net Debt / EBITDA 2022:** 27,158 / 6,314 = **4.30x**

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### For 2023 (as of 2023-01-01):

**Borrowings:**
- Current Borrowings: 12,508 million EUR
- Long-term Borrowings: 28,083 million EUR
- Total Borrowings: 40,591 million EUR

**Cash:**
- Cash and Cash Equivalents: 15,570 million EUR

**Net Debt 2023:** 40,591 - 15,570 = **25,021 million EUR**

**EBITDA 2023:**
Using the fiscal year 2022-2023 data (reported at 2023-01-01):
- Profit from Operating Activities: 1,127 million EUR
- Add back: Depreciation, Amortization & Provisions: 5,187 million EUR
- EBITDA 2023 = 1,127 + 5,187 = **6,314 million EUR**

**Net Debt / EBITDA 2023:** 25,021 / 6,314 = **3.96x**

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## Step 2: Calculate the Year-on-Year Change

**Change in ratio:** 3.96x - 4.30x = **-0.34x**

The absolute value of the change is 0.34x, which exceeds the ±0.3x threshold for "Stable."

Since the change is negative (ratio decreased), this represents an **improvement** in leverage.

However, the magnitude of improvement (0.34x) slightly exceeds the 0.3x stability threshold, indicating the leverage is moving beyond "Stable" territory into "Improving" territory.

<answer>Improving</answer>