Our gearing (net debt ratio) shows investors how significant net debt is relative to equity from shareholders in funding BP’s operations. We aim to keep our gearing within the 10-20% range to give us the flexibility to deal with an uncertain environment. Gearing is calculated by dividing net debt by total equity plus net debt. Net debt is equal to gross finance debt, plus associated derivative financial instruments, less cash and cash equivalents. For the nearest equivalent measure on an IFRS basis and for further information see Financial statements – Note 25. 2014 performance Gearing at the end of 2014 was 16.7%, up 0.5% on 2013 and within our target band of 10-20%.