I need to calculate the Net Debt / EBITDA ratio for 2022 based on S&P methodology. First, let me understand S&P methodology for Net Debt: - Net Debt = Total Debt - Cash and Cash Equivalents - Total Debt includes: financial liabilities (current and non-current), including lease liabilities, and typically including hybrid/perpetual instruments that are treated as debt-like Let me identify the relevant figures from the data: **Debt Components (2023-01-01, which is end of 2022):** Non-current financial liabilities: 44,216,000,000 EUR - This includes: Deudas Con Entidades De Credito Y Obligaciones U Otros Valores Negociables: 36,129,000,000 EUR - Instrumentos De Capital Con Caracteristicas De Pasivo Financiero No Corriente: 576,000,000 EUR - Noncurrent Derivative Financial Liabilities: 3,690,000,000 EUR - Noncurrent Lease Liabilities: 2,287,000,000 EUR - Other Noncurrent Financial Liabilities: 1,534,000,000 EUR Current financial liabilities: 25,079,000,000 EUR - This includes: Deudas Con Entidades De Credito Y Obligaciones U Otros Valores Negociables Corrientes: 10,458,000,000 EUR - Instrumentos De Capital Con Caracteristicas De Pasivo Financiero Corriente: 87,000,000 EUR - Current Derivative Financial Liabilities: 3,398,000,000 EUR - Current Lease Liabilities: 151,000,000 EUR - Other Current Financial Liabilities: 5,058,000,000 EUR Wait, let me check: 10,458 + 87 + 3,398 + 151 + 5,058 = 19,152... that doesn't equal 25,079. Let me re-read. Actually, looking more carefully at "Current Financial Liabilities" = 25,079,000,000 EUR. The components listed must include other items. Let me check "Trade And Other Payables To Trade Suppliers" at 5,927,000,000 EUR - but that's trade payables, not financial debt. For S&P methodology, we typically include: - All interest-bearing debt - Lease liabilities - Hybrid/perpetual instruments if debt-like - Bank debt, bonds, notes Let me use the broad "Noncurrent Financial Liabilities" and "Current Financial Liabilities" as the base, then adjust. Actually, for a cleaner approach, let me look at what S&P typically includes: - Short-term borrowings + current portion of long-term debt - Long-term debt - Lease liabilities - Hybrid equity treated as debt From the data: - Noncurrent financial liabilities: 44,216,000,000 EUR - Current financial liabilities: 25,079,000,000 EUR But we need to be careful - "Current Financial Liabilities" might include trade payables or other operating liabilities. Let me check if there's a better breakdown. Looking at the components under Current Financial Liabilities: - "Deudas Con Entidades De Credito YObligaciones UOtros Valores Negociables Corrientes" (Current bank debt and bonds): 10,458,000,000 EUR - "Instrumentos De Capital Con Caracteristicas De Pasivo Financiero Corriente": 87,000,000 EUR - "Current Derivative Financial Liabilities": 3,398,000,000 EUR - "Current Lease Liabilities": 151,000,000 EUR - "Other Current Financial Liabilities": 5,058,000,000 EUR Sum: 10,458 + 87 + 3,398 + 151 + 5,058 = 19,152,000,000 EUR... but total says 25,079,000,000 EUR. Hmm, there's a gap. Let me check if "Trade And Other Payables To Trade Suppliers" (5,927,000,000 EUR) is included? 19,152 + 5,927 = 25,079. Yes! So "Current Financial Liabilities" includes trade payables. For S&P Net Debt, we want interest-bearing debt, not trade payables. So I need to exclude trade payables. Actually, looking at standard practice, S&P Global Ratings methodology for Net Debt: - Includes: bank loans, bonds, finance leases, pension deficits, hybrid equity treated as debt - Excludes: trade payables, tax payables, other operating liabilities Let me recalculate more carefully. Looking at "Other Current Financial Liabilities" = 5,058,000,000 EUR - this could include various things. Actually, let me use a simpler approach. In many European annual reports, "Financial Liabilities" in the balance sheet context often means interest-bearing. But the inclusion of trade payables in "Current Financial Liabilities" suggests this is broader. Let me look at what Iberdrola typically reports. The Spanish term "Deudas Con Entidades De Credito Y Obligaciones U Otros Valores Negociables" is clearly bank debt and bonds. For S&P methodology, let me use: - Gross debt = Non-current financial liabilities + Current financial liabilities that are interest-bearing - excluding trade payables and similar operating items From the detailed breakdown that sums to Current Financial Liabilities (25,079): - Deudas Con Entidades De Credito... Corrientes: 10,458 - Instrumentos De Capital... Corriente: 87 - Current Derivative Financial Liabilities: 3,398 - Current Lease Liabilities: 151 - Other Current Financial Liabilities: 5,058 - Trade And Other Payables To Trade Suppliers: 5,927 Wait, 10,458 + 87 + 3,398 + 151 + 5,058 + 5,927 = 25,081... close to 25,079 (rounding). For S&P Net Debt, I should exclude: - Trade payables (5,927) - operating liability - Maybe some derivatives? S&P typically includes derivative liabilities if they're hedging debt, but it's complex. Let me use a more standard approach. S&P Global typically calculates Net Debt as: - Short-term debt + Long-term debt + Current portion of long-term debt + Finance lease liabilities - Cash and cash equivalents Looking at the data more carefully for "pure" debt: - Long-term bank debt and bonds (non-current): 36,129,000,000 EUR ("Deudas Con Entidades De Credito...") - Current bank debt and bonds: 10,458,000,000 EUR - Non-current capital instruments with debt characteristics: 576,000,000 EUR - Current capital instruments with debt characteristics: 87,000,000 EUR - Non-current lease liabilities: 2,287,000,000 EUR - Current lease liabilities: 151,000,000 EUR Total debt-like = 36,129 + 10,458 + 576 + 87 + 2,287 + 151 = 49,688,000,000 EUR But we also have "Other Noncurrent Financial Liabilities" (1,534,000,000) and "Other Current Financial Liabilities" (5,058,000,000). These could include various debt-like items or not. For S&P, we also need to consider if hybrid/perpetual bonds are treated as 50% debt or 100% debt. The "Instrumentos De Capital Con Caracteristicas De Pasivo Financiero" are hybrid instruments. Actually, let me check if there's a more direct way. S&P methodology often uses "Total Debt" which includes: - All interest-bearing liabilities - Pension deficits - Hybrid equity treated as debt For a quick estimate, let me use Total Financial Liabilities (gross) minus cash: Gross debt approach 1: Noncurrent Financial Liabilities + Current Financial Liabilities - Trade Payables = 44,216 + 25,079 - 5,927 = 63,368,000,000 EUR Less: Cash and Cash Equivalents: 4,608,000,000 EUR Net Debt = 63,368 - 4,608 = 58,760,000,000 EUR But this includes derivative liabilities which might be for hedging and not pure debt. Let me try another approach - more conservative: Debt = Deudas (bank + bonds) + Capital instruments + Lease liabilities = (36,129 + 10,458) + (576 + 87) + (2,287 + 151) = 46,587 + 663 + 2,438 = 49,688,000,000 EUR Plus: Other Noncurrent Financial Liabilities: 1,534 Plus: Other Current Financial Liabilities: 5,058 = 56,280,000,000 EUR Less Cash: 4,608 Net Debt = 51,672,000,000 EUR Hmm, but "Other Financial Liabilities" might include things like accrued interest, derivatives, etc. Let me look at what Iberdrola itself might report. Actually, looking at the data, I see "Noncurrent Financial Liabilities" = 44,216 and "Current Financial Liabilities" = 25,079. For S&P methodology, a common approach is: Net Debt = (Total Financial Liabilities) - (Cash and Cash Equivalents + Current Financial Assets that are liquid) But we need to be careful about what's in "Financial Liabilities." Actually, let me try to verify with the balance sheet. Total Assets = 154,667. Equity = 58,114. So Total Liabilities = 154,667 - 58,114 = 96,553. Noncurrent Liabilities = 67,714 Current Liabilities = 28,839 Total = 96,553 ✓ Now, what's debt vs non-debt in liabilities? - Noncurrent provisions: 4,225 (not debt) - Deferred tax: 11,682 (not debt) - Noncurrent government grants: 1,247 (not debt) - Instalaciones Cedidas: 5,673 (not sure, might be deferred income) - Other noncurrent nonfinancial: 309 So non-debt noncurrent = 4,225 + 11,682 + 1,247 + 5,673 + 309 + 362 (current tax noncurrent) = 23,498 Noncurrent debt-like = 67,714 - 23,498 = 44,216... which matches "Noncurrent Financial Liabilities"! Good. For current: - Current provisions: 922 - Trade payables: 5,927 - Current tax: 156 - Social security and other taxes: 1,262 - Other current nonfinancial: 2,811 - Other current liabilities: 1,393 Non-debt current = 922 + 5,927 + 156 + 1,262 + 2,811 + 1,393 = 12,471 Current debt-like = 28,839 - 12,471 = 16,368... but "Current Financial Liabilities" is 25,079. Wait, let me check: 28,839 total current liabilities. - Current provisions: 922 - Current financial liabilities: 25,079 - Other current nonfinancial: 2,811 - Current tax: 156 - Social security: 1,262 - Other current liabilities: 1,393 Hmm 922 + 25,079 + 2,811 + 156 + 1,262 + 1,393 = 31,623... that's more than 28,839. Let me re-read. "Other Current Liabilities" = 1,393. Is this part of or separate from "Other Current Nonfinancial Liabilities" = 2,811? Actually, looking at the structure: - Current Provisions: 922 - Current Financial Liabilities: 25,079 - Other Current Nonfinancial Liabilities: 2,811 - Current Tax Liabilities Current: 156 - Current Payables On Social Security And Taxes Other Than Income Tax: 1,262 - Other Current Liabilities: 1,393 Total = 922 + 25,079 + 2,811 + 156 + 1,262 + 1,393 = 31,623 ≠ 28,839. There's an issue. Let me check if "Liabilities Included In Disposal Groups Classified As Held For Sale" = 27 is included in current liabilities? 28,839 + 27 = 28,866 for total current... no. Actually wait - "Current Assets" = 23,367 and "Current Assets Other Than Assets Or Disposal Groups Classified As Held For Sale Or As Held For Distribution To Owners" = 308. So held for sale assets = 308? And "Liabilities Included In Disposal Groups Classified As Held For Sale" = 27. Let me check if Current Liabilities includes the 27 or not. 28,839 + 27 = 28,866, but total liabilities = 96,553, and noncurrent = 67,714, so current should be 28,839. Hmm, let me just use the reported "Current Financial Liabilities" = 25,079 and "Noncurrent Financial Liabilities" = 44,216 as the starting point for debt, and adjust. For S&P Net Debt, typical adjustments: - Exclude derivative liabilities if they're hedging (but include if speculative) - Exclude trade payables (already seems excluded from noncurrent, but current financial liabilities might include them) Actually, looking back at my sum: the components of Current Financial Liabilities included "Trade And Other Payables To Trade Suppliers" = 5,927. So yes, trade payables ARE included in Current Financial Liabilities. For S&P methodology, we need to exclude trade payables from debt. So Gross Debt = Noncurrent Financial Liabilities + Current Financial Liabilities - Trade Payables = 44,216 + 25,079 - 5,927 = 63,368,000,000 EUR But we also might want to exclude derivative liabilities if they're not debt-like. S&P typically includes derivative liabilities as part of debt if they're negative (i.e., liabilities). Actually, S&P includes them at market value. For a cleaner S&P approach: Gross Debt = - Bank debt and bonds (non-current): 36,129 - Bank debt and bonds (current): 10,458 - Capital instruments non-current: 576 - Capital instruments current: 87 - Lease liabilities non-current: 2,287 - Lease liabilities current: 151 - Other non-current financial liabilities: 1,534 - Other current financial liabilities: 5,058 Total = 49,688 + 1,534 + 5,058 = 56,280,000,000 EUR Less: Cash and Cash Equivalents = 4,608,000,000 EUR Net Debt = 51,672,000,000 EUR But wait - what about "Current Financial Assets" and "Noncurrent Financial Assets"? Should we include liquid financial assets as offset to debt? S&P Net Debt typically = Gross Debt - Cash - Cash Equivalents - Liquid Investments "Cash And Cash Equivalents" = 4,608 "Current Financial Assets" = 4,813 (but this includes derivatives and other items) "Other Current Financial Assets" = 2,964 "Current Derivative Financial Assets" = 1,849 For S&P, liquid investments that can readily be converted to cash might be included. But let's be conservative and just use Cash and Cash Equivalents. Actually, looking at standard S&P Global Ratings methodology, they typically deduct "cash and liquid investments" from gross debt. But for a quick estimate, cash and equivalents is standard. Let me also check if there are any other items. What about "Cartera De Valores No Corrientes" (non-current securities portfolio) = 32? That's tiny. Now for EBITDA. We have "Beneficio Bruto De Explotacion Ebitda" = 13,228,000,000 EUR for 2022. But wait - is this already EBITDA or do we need to calculate it? The Spanish label says "Beneficio Bruto De Explotacion Ebitda" which suggests it IS EBITDA. Let me verify: Revenue = 53,949. Raw Materials = 33,750. Gross Profit = 20,199. Then various expenses to get to EBITDA. Actually, looking at the flow: - Gross Profit: 20,199 - Employee Benefits: -3,365 - Other Work Capitalised: +847 - Gastos De Servicios: -3,602 (but note it's shown as negative, so expense) - Other Gains Losses: +911 - Gasto Operativo Neto: -5,209 (net operating expense) Hmm, let me trace through more carefully. The items listed seem to be building to EBITDA. Actually, "Beneficio Bruto De Explotacion Ebitda" = 13,228 is explicitly stated. This is EBITDA. But let me verify: 20,199 (Gross Profit) - 3,365 (Employee) + 847 (Capitalised) - 3,602 (Services) + 911 (Other gains) = 14,990... not 13,228. Wait, "Gasto Operativo Neto" = -5,209. Maybe that's the net of some items? Let me try: Gross Profit 20,199 + Other Work 847 + Other Gains 911 - Employee 3,365 - Gastos Servicios 3,602 = 14,990. Then subtract something to get 13,228? Actually, "Gasto Operativo Neto" = -5,209 might already be a net figure. Let me see: 20,199 - 5,209 = 14,990? No, 20,199 + (-5,209) = 14,990, not 13,228. Hmm, let me check: 20,199 - 3,365 + 847 - 3,602 + 911 - 5,209 = 9,781? No... Actually, looking at this more carefully. The items might not all be additive. "Gasto Operativo Neto" might include the other items. Let me just use the explicit EBITDA figure: 13,228,000,000 EUR. But wait - I need to check if this is the right EBITDA for S&P. S&P typically uses "Adjusted EBITDA" which might add back certain items. But let's use the reported figure. Now, Net Debt / EBITDA ratio: Using Net Debt = Gross Debt - Cash Approach 1: Broad debt definition Gross Debt = 44,216 + 25,079 = 69,295 (all financial liabilities) Less Cash = 4,608 Net Debt = 64,687 EBITDA = 13,228 Ratio = 64,687 / 13,228 = 4.89x Approach 2: Excluding trade payables from current financial liabilities Gross Debt = 44,216 + 25,079 - 5,927 = 63,368 Less Cash = 4,608 Net Debt = 58,760 Ratio = 58,760 / 13,228 = 4.44x Approach 3: More conservative, only bank debt, bonds, capital instruments, leases Gross Debt = 36,129 + 10,458 + 576 + 87 + 2,287 + 151 + 1,534 + 5,058 = 56,280 Less Cash = 4,608 Net Debt = 51,672 Ratio = 51,672 / 13,228 = 3.91x Hmm, which is right for S&P? Let me think about what S&P Global Ratings typically does. S&P methodology for Net Debt: - Includes: short-term borrowings, current portion of long-term debt, long-term debt, finance lease obligations, derivative liabilities (if negative), pension deficits, hybrid equity treated as debt - Excludes: trade payables, deferred tax liabilities, provisions (unless pension), other operating liabilities For the "Other Current Financial Liabilities" = 5,058 and "Other Noncurrent Financial Liabilities" = 1,534, these likely include items like accrued interest, derivative settlements, etc. Some might be debt-like, some not. Actually, looking at typical utility company reporting, "financial liabilities" in IFRS often includes all interest-bearing items. The 5,058 other current might include commercial paper, accrued interest, or other short-term debt. For a reasonable S&P estimate, let me use: - All "Deudas Con Entidades De Credito" (bank debt and bonds): 36,129 + 10,458 = 46,587 - Capital instruments with debt characteristics: 576 + 87 = 663 - Lease liabilities: 2,287 + 151 = 2,438 - Other financial liabilities: 1,534 + 5,058 = 6,592 Total Gross Debt = 56,280,000,000 EUR Less: Cash and Cash Equivalents = 4,608,000,000 EUR Net Debt = 51,672,000,000 EUR EBITDA = 13,228,000,000 EUR Ratio = 51,672 / 13,228 = 3.906... But wait, I should double-check if there are other liquid assets to deduct. "Current Financial Assets" = 4,813, which includes: - Other Current Financial Assets: 2,964 - Current Derivative Financial Assets: 1,849 These are not typically "cash-like" unless they're very liquid investments. S&P sometimes deducts "readily marketable securities" but not derivatives. Actually, looking more carefully, "Cartera De Valores No Corrientes" = 32 (non-current securities) is tiny. For a more standard S&P approach, let me also consider if we should include the full "Other Financial Liabilities" or exclude some. Actually, I realize I need to re-check. Let me look at whether "Current Financial Liabilities" includes trade payables. I calculated earlier that it does (the sum of components including trade payables equals 25,079). But wait - let me re-verify. The components I identified: - Deudas...Corrientes: 10,458 - Instrumentos...Corriente: 87 - Current Derivative Financial Liabilities: 3,398 - Current Lease Liabilities: 151 - Other Current Financial Liabilities: 5,058 - Trade And Other Payables To Trade Suppliers: 5,927 Sum = 25,081 ≈ 25,079 (rounding difference) So yes, trade payables are included in Current Financial Liabilities. For S&P Net Debt, we definitely exclude trade payables. So: Gross Debt for S&P = Noncurrent Financial Liabilities + (Current Financial Liabilities - Trade Payables - maybe some other non-debt items) But actually, looking at this more carefully, "Trade And Other Payables To Trade Suppliers" might not be part of "Current Financial Liabilities" - it might be part of "Other Current Liabilities" or separate. Let me re-check the balance sheet structure. Looking at the items under Current Liabilities: - Current Provisions: 922 - Current Financial Liabilities: 25,079 - Trade And Other Payables To Trade Suppliers: 5,927 - Other Current Nonfinancial Liabilities: 2,811 - Current Tax Liabilities Current: 156 - Current Payables On Social Security And Taxes Other Than Income Tax: 1,262 - Other Current Liabilities: 1,393 Total = 922 + 25,079 + 5,927 + 2,811 + 156 + 1,262 + 1,393 = 37,550... but Current Liabilities = 28,839. Hmm, this doesn't add up. There must be overlap or I'm misreading the structure. Wait - let me re-read. "Other Current Liabilities" = 1,393 might be a subset or there might be overlap in categories. Actually, looking at the data format, these are all separate line items that should sum to Current Liabilities. But they don't. Let me check if some are parenthetical or notes. Actually, I think the issue is that "Current Financial Liabilities" = 25,079 already includes some items, and the breakdown I found is separate. Let me look more carefully. Looking at the text: "Current Financial Liabilities" 2023-01-01: 25079000000 EUR Then later: "Deudas Con Entidades De Credito YObligaciones UOtros Valores Negociables Corrientes" 2023-01-01: 10458000000 EUR "Instrumentos De Capital Con Caracteristicas De Pasivo Financiero Corriente" 2023-01-01: 87000000 EUR "Current Derivative Financial Liabilities" 2023-01-01: 3398000000 EUR "Current Lease Liabilities" 2023-01-01: 151000000 EUR "Trade And Other Payables To Trade Suppliers" 2023-01-01: 5927000000 EUR "Other Current Financial Liabilities" 2023-01-01: 5058000000 EUR These seem to be separate line items, not necessarily a breakdown of Current Financial Liabilities. Let me check if they sum to something. 10,458 + 87 + 3,398 + 151 + 5,927 + 5,058 = 25,079. Yes! They sum to Current Financial Liabilities. So "Current Financial Liabilities" = 25,079 includes: - Bank debt and bonds: 10,458 - Capital instruments: 87 - Derivative liabilities: 3,398 - Lease liabilities: 151 - Trade payables: 5,927 - Other financial liabilities: 5,058 For S&P, we want to exclude trade payables (5,927) as they're operating liabilities. So interest-bearing current debt = 25,079 - 5,927 = 19,152,000,000 EUR Plus noncurrent financial liabilities = 44,216,000,000 EUR But wait - does noncurrent financial liabilities include non-debt items? Let me check its components. From the data: "Deudas Con Entidades De Credito YObligaciones UOtros Valores Negociables" (non-current): 36,129 "Instrumentos De Capital Con Caracteristicas De Pasivo Financiero No Corriente": 576 "Noncurrent Derivative Financial Liabilities": 3,690 "Noncurrent Lease Liabilities": 2,287 "Other Noncurrent Financial Liabilities": 1,534 Sum = 36,129 + 576 + 3,690 + 2,287 + 1,534 = 44,216. ✓ For S&P, all of these are typically included in debt except we might question derivatives. But S&P generally includes derivative liabilities. So Gross Debt = 44,216 + 19,152 = 63,368,000,000 EUR Less: Cash and Cash Equivalents = 4,608,000,000 EUR Net Debt = 58,760,000,000 EUR EBITDA = 13,228,000,000 EUR Net Debt / EBITDA = 58,760 / 13,228 = 4.442... Let me round to 4.44 or about 4.4x. But I want to double-check - should I include derivative assets/liabilities? In S&P methodology, derivatives are typically included at fair value (assets reduce debt, liabilities increase debt). So we have: - Noncurrent derivative liabilities: 3,690 - Current derivative liabilities: 3,398 - Noncurrent derivative assets: 3,661 (from "Noncurrent Derivative Financial Assets") - Current derivative assets: 1,849 Net derivative position = (3,690 + 3,398) - (3,661 + 1,849) = 7,088 - 5,510 = 1,578 liability If we net derivatives, we could reduce gross debt by derivative assets and increase by derivative liabilities, or just use the net. Actually, standard S&P practice is to include gross derivative liabilities in debt and derivative assets as part of "cash and liquid assets" if they're readily realizable. But this gets complicated. For simplicity and consistency with typical S&P reported ratios, let me use: - Gross debt including all financial liabilities (excluding trade payables) - Less cash and cash equivalents Net Debt = 58,760,000,000 EUR EBITDA = 13,228,000,000 EUR Ratio = 4.44x But let me also consider if there are other cash-like items. "Current Financial Assets" = 4,813 includes: - Other Current Financial Assets: 2,964 - Current Derivative Financial Assets: 1,849 If we consider "Other Current Financial Assets" as liquid investments, we might deduct another 2,964 from net debt. S&P Global Ratings sometimes deducts "cash and liquid investments" where liquid investments might include short-term marketable securities. If we deduct Other Current Financial Assets (assuming they're liquid investments): Net Debt = 58,760 - 2,964 = 55,796 Ratio = 55,796 / 13,228 = 4.22x But we don't know what "Other Current Financial Assets" consists of. Could be loans to associates, deposits, etc. Let me stick with the more conservative and standard approach: Cash and Cash Equivalents only. Actually, I want to re-verify my EBITDA figure. Let me check if "Beneficio Bruto De Explotacion Ebitda" is indeed the right EBITDA. The term "EBITDA" in the label suggests yes. But let me verify by calculation if possible. From the P&L: Revenue: 53,949 Raw Materials: 33,750 Gross Profit: 20,199 Then to get to "Profit Loss From Operating Activities" (which is EBIT): Gross Profit 20,199 - Employee 3,365 + Other Work Capitalised 847 - Gastos De Servicios 3,602 (expense, note negative sign in data might mean it's already subtracted) + Other Gains Losses 911 - Gasto Operativo Neto 5,209 - Correccion Valorativa 470 - Depreciation Amortisation 4,774 = Profit Loss From Operating Activities 7,984 Let me try: 20,199 - 3,365 + 847 - 3,602 + 911 - 5,209 - 470 - 4,774 = 4,537? Not 7,984. Hmm, the signs are confusing. Let me look at the explicit EBITDA: 13,228. Actually, "Beneficio Bruto De Explotacion Ebitda" = 13,228. Then: - Correccion Valorativa: -470 - Depreciation Amortisation: -4,774 = Profit Loss From Operating Activities: 7,984? 13,228 - 470 - 4,774 = 7,984. ✓ Yes! So EBITDA = 13,228 is correct, and EBIT = 7,984. Now, is this "Adjusted EBITDA" per S&P? S&P typically adjusts for non-recurring items, but we don't have that detail. Let's use 13,228. Let me also verify my debt calculation one more time. For S&P methodology: A common definition is: Net Debt = Short-term debt + Long-term debt + Current portion of long-term debt - Cash and cash equivalents From the balance sheet: - Current bank debt and bonds: 10,458 - Current capital instruments: 87 - Current lease liabilities: 151 - Current other financial liabilities: 5,058 (likely includes current portion of long-term debt, accrued interest, etc.) - Non-current bank debt and bonds: 36,129 - Non-current capital instruments: 576 - Non-current derivative liabilities: 3,690 - Non-current lease liabilities: 2,287 - Non-current other financial liabilities: 1,534 For S&P, the question is whether to include: - Derivatives: Yes, typically at fair value - Capital instruments with debt characteristics: Yes, often treated as 100% debt or 50% equity/50% debt depending on features - Leases: Yes, finance leases are debt So Gross Debt = 63,368 (excluding trade payables of 5,927) Less Cash = 4,608 Net Debt = 58,760 Ratio = 58,760 / 13,228 = 4.442... Let me see if I should make any other adjustments. Actually, looking at typical S&P Global Ratings reports for Iberdrola, they often report Net Debt / EBITDA around 4.0-4.5x in recent years. So my estimate seems reasonable. One more check: should I include "Instalaciones Cedidas Y Financiadas Por Terceros" (5,673)? This is "Third-party financed facilities" which might be a form of off-balance sheet or special purpose financing. It's classified under noncurrent liabilities but not under financial liabilities. In S&P methodology, if these are debt-like obligations (e.g., take-or-pay contracts, service agreements that are effectively debt), they might be included as "debt-like" obligations. But without more detail, and since they're classified as non-financial liabilities, I'll exclude them for a standard calculation. Similarly, "Noncurrent Government Grants" (1,247) and "Noncurrent Provisions" (4,225) are not debt. So my final calculation: Net Debt = 58,760,000,000 EUR EBITDA = 13,228,000,000 EUR Net Debt / EBITDA = 4.44x Or more precisely: 58,760 / 13,228 = 4.44209... Rounding to two decimal places: 4.44 Actually, let me also try including the "Other Current Financial Liabilities" more carefully. If 5,058 includes things like accrued interest or short-term paper, it's debt. If it includes dividends payable or other non-debt, we should exclude. Without more detail, including it is reasonable for S&P estimation. Wait, I want to double-check one thing. The user asks for "2022" ratio. The data has dates like "2023-01-01" which is the balance sheet at end of 2022 (beginning of 2023). And the P&L is "2022-01-01 - 2023-01-01" which is the year 2022. So yes, this is the 2022 ratio. Let me also verify: should I use average debt or year-end debt? S&P typically uses year-end or latest available. For this calculation, using year-end 2022 (i.e., 2023-01-01) is correct. Final answer: 4.44 But let me also consider if I should use a slightly different approach. Some S&P calculations include: - Pension deficits in debt: We have "Noncurrent Provisions For Employee Benefits" = 1,226. This is a provision, not debt per se, but pension deficits are sometimes added. - Deferred tax assets/liabilities: Not typically included in debt calculation. If I add pension provisions to debt: Net Debt = 58,760 + 1,226 = 60, (current pension is 42, but provisions are already excluded) Actually, pension provisions are not financial liabilities, so I shouldn't add them to "debt" for this calculation. Let me stick with 4.44. Actually, one more verification. Let me recalculate: Gross Debt = 44,216 (noncurrent financial) + 25,079 (current financial) - 5,927 (trade payables) = 63,368 Less Cash = 4,608 Net Debt = 58,760 58,760 / 13,228 = 4.44209... I'll round to 4.44 or maybe present as 4.4. Given the precision of inputs, two decimal places seems appropriate. Hmm, but let me also check if there's any other interpretation. Some sources calculate Net Debt as: Total Debt - Cash - Marketable Securities If "Other Current Financial Assets" (2,964) and "Cartera De Valores No Corrientes" (32) are marketable securities: Cash-like = 4,608 + 2,964 + 32 = 7,604 Net Debt = 63,368 - 7,604 = 55,764 Ratio = 55,764 / 13,228 = 4.22 But without knowing the exact nature of Other Current Financial Assets, this is speculative. The standard "Cash and Cash Equivalents" is the safest deduction. I'll provide 4.44 as my estimate. 4.44