I'll estimate the FFO / Net Debt ratio for IBERDROLA SA for 2022 based on S&P methodology.

## Step 1: Estimate FFO (Funds From Operations)

S&P's FFO starts with net income from continuing operations, adds back depreciation/amortization, and adjusts for non-cash items. A simplified approach:

**FFO ≈ Cash Flows from Operating Activities + Net Interest Paid - Working Capital Changes**

Alternatively, FFO = Net Income + D&A + Deferred taxes + Other non-cash items - Working capital changes from CFO

Let me use the cash flow approach:

**Operating Cash Flow (OCF):** €10,443M (2022-01-01 to 2023-01-01, i.e., FY2022)

Working capital adjustments included in OCF:
- Change in trade receivables: -€1,701M
- Change in inventories: +€521M
- Change in trade payables: +€44M
- Total working capital impact: -€1,136M

**FFO = OCF - Working Capital Changes**
FFO = €10,443M - (-€1,701M + €521M + €44M) = €10,443M + €1,136M = €11,579M

Wait - S&P FFO typically removes working capital changes from CFO. So:

FFO = OCF - WC changes = €10,443 - (-€1,136) = €10,443 + €1,136 = €11,579M

But S&P also treats lease payments and hybrid instrument interest. Let me adjust:
- Add back lease interest: +€61M (already in CFO as financing)
- Hybrid equity credit: S&P may give 50% equity credit to perpetual subordinated bonds

## Step 2: Estimate Net Debt

**Gross Financial Debt:**
- Non-current financial liabilities (bank debt & bonds): €36,129M
- Current financial liabilities (bank debt & bonds): €10,458M
- Non-current lease liabilities: €2,287M
- Current lease liabilities: €151M
- Capital instruments with financial liability characteristics: €576M + €87M = €663M

Total Gross Debt = €36,129 + €10,458 + €2,287 + €151 + €663 = €49,688M

**S&P adjustments:**
- S&P typically gives 50% equity credit to hybrid/perpetual subordinated instruments. The NCI includes ~€2,750M from perpetual subordinated bonds issuance. Let me assume hybrids ≈ €5,500M (accumulated). With 50% equity credit, subtract ~€2,750M from debt.
- But the capital instruments (€663M) are already on balance sheet as liabilities. The perpetual subordinated bonds may be in NCI. For simplicity, I'll use the balance sheet debt.

**Cash:** €4,608M
**Current financial assets (liquid):** ~€2,964M (other current financial assets)

**Net Debt = Gross Debt - Cash**
Net Debt = €49,688M - €4,608M = €45,080M

S&P would likely also add operating lease adjustments (already capitalized under IFRS 16) and potentially 50% of hybrids.

Adjusting: If we remove 50% equity credit on hybrids (~€663M × 50% = €332M reduction):
Net Debt ≈ €45,080M - €332M ≈ €44,748M

## Step 3: Calculate Ratio

**FFO / Net Debt = €11,579M / €44,748M ≈ 0.259 or ~25.9%**

Refining slightly - S&P FFO also deducts preferred dividends and hybrid costs that aren't in operating cash flows. The perpetual subordinated bond interest of €169M should be deducted:

FFO = €11,579M - €169M = €11,410M

FFO/Net Debt = €11,410M / €44,748M ≈ 0.255 or ~25.5%

Using a more standard net debt (without subtracting hybrid equity credit):
FFO/Net Debt = €11,410M / €45,080M ≈ 0.253

<answer>0.253</answer>