Asus 2014 Annual Report Download - page 112

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The root causes of the financial ratio change in the last two years:
Ratio of long-term capital to Property, plant and equipment: Rise in long-term investment balance this period and
decline in average real estate, factory and equipment net value caused the current long-term fund ratio
to real estate, factory and equipment to go up.
Times interest earned: The rise in current interest expenses caused interest protection multipliers to drop.
Ratio of return on total assets: The current average total asset amount increased, causing the current return on assets to
drop.
Ratio of return on equity: The current average equity amount rose, causing the current return on equity to drop.
Cash flow ratio: The cash inflow from current operating activities reduced while the account payable for material
purchase and other payables increased current liabilities. Hence cash flow ratio declined.
Cash flow adequacy ratio: The cash inflow from operating activities in last 5 years was reduced while the inventory in
last 5 years increased, therefore the cash flow adequacy ratio dropped.
Cash reinvestment ratio: Cash inflow of current operating activities reduced while long-term investment balance went
up, hence the cash reinvestment ratio dropped.
Note: The notes are the same as Financial Analysis for consolidated report – adopting IFRSs