Asus 2008 Annual Report Download - page 216

212
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Analysis of financial ratio change:
1. Operating income and operating cost:ǶThe decrease of operating income and operating cost decreased from
the year before due to the OEM business split to the subsidiary.
2. Operating expense: The operating expense is decreased from the year before due to decrease of the
marketing expense and R&D expense as a result of the OEM business split to the subsidiary.
3. Non-operating income and gain: The non-operating income and gain is decreased from the year before due
to the decrease of investment gain under Equity Method and the increase of gain from bad debt reversed.
4. Non-operating expense and loss: The non-operating expense and loss is decreased from the year before due
to the decrease of amortized interest expense for corporate bond discount and the loss of financial debt in
valuation.
5. Estimated income tax expense:The Estimated income tax expense is decreased from the year before due to
the decrease of taxable income.
(II) Analysis of gross profit
Unit: NT$ Thousands
Root cause
Change amount Difference of
price
Difference of
cost
Difference of
sales
combination
Difference of
quantity
Gross profit (14,853,838) (17,655,164) 21,393,097 Ȑ1,000,724ȑ (17,591,047)
Remark The decrease of gross profit in 2008 was due to the effect of unfavorable change in sales
volume exceeding the favorable change in gross profit.
III. Analysis of cash flow
(I) Liquidity analysis of the last two years
2008 2007 Financial ratio change
Current ratio 33.92ʘ 9.44ʘ 24.48ʘ
Cash adequacy ratio 36.87ʘ 26.37ʘ 10.50ʘ
Cash reinvestment ratio 4.92ʘ 3.54ʘ 1.38ʘ
Analysis of financial ratio change:
Current ratio, Cash adequacy ratio, and Cash reinvestment ratio were increased in 2008 from
2007.
Root cause: The net cash inflow from operating activity was increased due to the decrease o
f
current liability and accounts receivable as a result of the OEM business split to
the subsidiary.!
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