_432 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements 33.3 Capital risk management The Group's objectives when managing its capital are to protect its ability to continue as a going concern and to ensure its development, so that it can provide returns for shareholders and benefits for other stakeholders. The main indicator used for capital management purposes is gearing. Gearing corresponds to the ratio of net debt to equity. (in € millions) December 31, 2023 December 31, 2022 Net debt (note 26) 3,281 4,320 Equity 17,958 17,116 GEARING 0.18 0.25 33.4 Classification of financial assets Group financial assets break down as follows between the categories “at fair value through profit or loss (FVTPL)”, “at fair value through other comprehensive income (FVOCI)” and “at amortized cost” at December 31, 2023: (in € millions) FVTPL FVOCI Amortized cost Total 2023 Trade receivables - - 3,850 3,850 Current financial assets 78 - 434 512 Cash and cash equivalents 1,282 - 1,233 2,515 Non-current financial assets 468 412 725 1,605 TOTAL FINANCIAL ASSETS 1,828 412 6,242 8,482 Non-current financial assets at fair value through profit or loss consist mainly of the Solesis preferred shares (note 4.2.2) and the escrow account related to UK pension plans (note 27). Investments in non-consolidated companies are measured at fair value through other comprehensive income (note 15). 33.5 Fair value measurement hierarchy The following tables present Group assets and liabilities measured at fair value at December 31, 2023 and 2022 by level in the fair value measurement hierarchy: (in € millions) Level 1 Level 2 Level 3 Total 2023 Cash and cash equivalents 1,282 - - 1,282 Current financial assets (including derivatives) 43 35 - 78 Non-current financial assets (including derivatives) 159 334 387 880 TOTAL ASSETS 1,484 369 387 2,240 Derivative instruments (note 16.2) - 20 - 20 TOTAL LIABILITIES - 20 - 20 (in € millions) Level 1 Level 2 Level 3 Total 2022 Cash and cash equivalents 1,593 - - 1,593 Current financial assets (including derivatives) 57 153 - 210 Non-current financial assets (including derivatives) 145 303 367 815 TOTAL ASSETS 1,795 456 367 2,618 Derivative instruments (note 16.2) - 114 - 114 TOTAL LIABILITIES - 114 - 114 There has been no significant transfer during these two years between level 1 and level 2.
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