Methodology · v3.0

DSRDebt Sustainability

Net Debt / EBITDA for {legal_name} (latest fiscal year). EXTRACTION RULES: STEP-BY-STEP FORMULA — DO NOT use total_debt or term_debt alone. (1) Read total_debt = short_term_borrowings + commercial_paper + long_term_debt from the most recent annual filing (SEC 10-K / 10-Q in the US; equivalent annual report / Bilancio / Geschäftsbericht / DEF/RNS filing elsewhere) — balance sheet. (2) Read cash_and_marketable_securities = cash_and_cash_equivalents + short_term_marketable_securities + long_term_marketable_securities (many cash-rich mega-caps park reserves in marketable securities rather than cash). (3) net_debt = total_debt − cash_and_marketable_securities. NET DEBT CAN BE NEGATIVE for cash-rich mega-caps — emit the negative number (it maps to score 90, the highest band). (4) TTM EBITDA from an independent ratios page (StockAnalysis / Macrotrends / GuruFocus / equivalent). (5) ratio = net_debt / TTM_EBITDA. WORKED EXAMPLE PATTERN: total_debt = T, cash + marketable securities = C, net_debt = T − C (negative when C > T), EBITDA = E, ratio = (T − C) / E. Cite the regulator filing URL + at least one independent ratios page. DO NOT compute the ratio yourself (LLMs are unreliable at arithmetic). PROVIDE THE RAW INPUTS and let the SERVER compute it: Return exact_numerical with derived={op:"net_debt_ratio", inputs:{total_debt:<T>, cash_and_marketable:<C>, ebitda:<E>}}, unit="ratio", source_urls:[...]. Use the SAME currency/scale for all three numbers. The server computes (total_debt − cash_and_marketable) / ebitda and applies ratio_band; if you also include value=<ratio> for back-compat the server IGNORES it for scoring and flags any disagreement. If the LLM cannot find cash_and_marketable_securities (only cash_and_equivalents is shown), it MUST search the annual-report notes for "Marketable Securities" — mega-caps frequently hold tens or hundreds of billions in marketable securities that must NOT be ignored, or the ratio inflates by a full band (categorical regression). Server applies ratio_band (<0→90, 0-1→85, 1-2→75, 2-3→60, 3-5→40, 5+→20). FREE PUBLIC SOURCES FOR PRIVATE/UNLISTED COMPANIES (consult these BEFORE returning absent — for EU private companies the deposited statutory accounts are almost always public and free): pan-EU → North Data, FinancialReports.eu, OpenCorporates; IT → Registro Imprese/InfoCamere, ufficiocamerale.it, ReportAziende.it, CompanyReports; UK → Companies House; FR → Pappers, Infogreffe, societe.com, annuaire-entreprises.data.gouv.fr, data.inpi.fr; DE → Bundesanzeiger, Unternehmensregister, North Data; BE → National Bank of Belgium (Central Balance Sheet), KBO/BCE; ES → Registro Mercantil/BORME, Einforma, Axesor; NL → KvK, company.info; IE → CRO; SE → Allabolag; NO → Proff; DK → CVR/Virk; FI → Asiakastieto/PRH; US → SEC EDGAR. EBITDA FALLBACK for private companies with no ratios page: reconstruct EBITDA from the deposited income statement = operating result (EBIT) + depreciation & amortization (both are disclosed line items in EU statutory accounts; in the Italian CEE schema, line B.10 "Ammortamenti e svalutazioni"); if only operating profit (EBIT) is available you MAY use Net Debt / EBIT as a slightly conservative proxy and state it in _reasoning. Use the deposited figures, not aggregator estimates/ratings. If, after consulting the national register + at least one aggregator, the debt/EBITDA(or EBIT) figures are NOT publicly disclosed for {legal_name} → type="absent" reason="not_disclosed" (do NOT fabricate or estimate).