# Net Debt / EBITDA Ratio Estimation (S&P Methodology)

## Step 1: Determine EBITDA

From the data, EBITDA (Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense) for 2022:
- **EBITDA = 32,057,000,000 DKK**

However, under S&P methodology, we should consider adjustments. S&P typically starts with EBITDA and may make adjustments for items like gains on disposals, but let me use the reported EBITDA figure as the base.

## Step 2: Determine Net Debt (S&P Methodology)

Under S&P methodology, Net Debt typically includes:
- Short-term borrowings
- Long-term borrowings
- Lease liabilities (S&P typically includes these)
- **Hybrid capital**: S&P typically assigns intermediate equity content to hybrid instruments, often treating 50% as debt and 50% as equity
- Minus: Cash and liquid investments

### Components at end of 2022 (2023-01-01 balance sheet):

**Gross Debt:**
- Long-term borrowings: 60,451,000,000
- Short-term borrowings: 2,830,000,000
- Noncurrent lease liabilities: 7,697,000,000
- Current lease liabilities: 569,000,000
- Hybrid capital (50% as debt per S&P): 19,793,000,000 × 50% = 9,896,500,000

Total gross debt = 60,451 + 2,830 + 7,697 + 569 + 9,897 = **81,444 billion DKK** (approximately)

**Cash and liquid assets:**
- Cash: 16,178,000,000
- Current financial assets at fair value (securities): 25,197,000,000

S&P may not give full credit for all liquid assets, but typically cash and readily marketable securities are deducted. Let me use cash + current financial assets as a reasonable approximation.

Total cash and equivalents = 16,178 + 25,197 = **41,375 billion DKK**

However, S&P is often more conservative and may only use cash and cash equivalents. Let me consider just cash:
- Cash: 16,178,000,000

**Net Debt calculation:**
- Using cash only: 81,444 - 16,178 = **65,266 billion DKK**
- Using cash + securities: 81,444 - 41,375 = **40,069 billion DKK**

## Step 3: EBITDA Adjustments (S&P)

S&P would also adjust EBITDA:
- Add back: 50% of hybrid capital coupon payments (since 50% treated as debt, the interest portion would be added back) ≈ 577 × 50% = ~289 million
- S&P adjusted EBITDA ≈ 32,057 + 289 ≈ 32,346 billion

But this is a minor adjustment. Let me use the reported EBITDA of 32,057.

## Step 4: Calculate Ratio

S&P typically uses a more moderate approach. Using cash and short-term investments:

Net Debt = 60,451 + 2,830 + 7,697 + 569 + 9,897 - 16,178 = 65,266 billion DKK

But S&P often includes surplus cash. Let me use the more standard approach with just cash:

**Net Debt / EBITDA = 65,266 / 32,057 ≈ 2.04**

If we include the current financial assets (which are likely margin deposits/money market funds):
**Net Debt / EBITDA = 40,069 / 32,057 ≈ 1.25**

Given S&P methodology typically uses accessible cash and short-term investments, and considering the tax equity liabilities might also be included by some methodologies, a reasonable S&P-based estimate would be approximately **2.0x** using the conservative cash-only approach.

Net Debt = 60,451 + 2,830 + 7,697 + 569 + 9,897 - 16,178 = 65,266
EBITDA = 32,057

Ratio = 65,266 / 32,057 = 2.04

<answer>2.0</answer>