Asus 2015 Annual Report Download - page 120

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116
The root causes of the financial ratio change in the last two years:
Times interest earned: The decrease in interest expenses caused increase in interest protection multiples.
Inventory turnover: The higher balance of inventory in this year caused the increase in inventory turnover.
Ratio of return on equity: The decrease in income and increase in average total equity in current period caused the
decrease in ROE in current period.
Cash flow ratio: The cash outflow from operating activities this year was intended to pay the payable accounts for the
purchased materials, causing the decrease in cash flow ratio.
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: The cash outflow from operating activities of this year caused the decrease in cash
re-investment ratio.
Note: The notes are the same as Financial Analysis for consolidated report – adopting IFRSs