HTC 2013 Annual Report Download - page 87

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FINANCIAL INFORMATION FINANCIAL INFORMATION
170 171
Note 1: Glossary
a. Capital Structure Analysis
(1) Debt Ratio ＝Total Liabilities / Total Assets.
(2) Long-term Fund to Fixed Assets Ratio ＝(Shareholders' Equity + Long-term Liabilities) / Net Fixed Assets.
b. Liquidity Analysis
(1) Current Ratio ＝Current Assets / Current Liabilities.
(2) Quick Ratio ＝(Current Assets - Inventories - Prepaid Expenses) / Current Liabilities.
(3) Debt Services Coverage Ratio ＝Earnings before Interest and Taxes / Interest Expenses.
c. Operating Performance Analysis
(1) Average Collection Turnover ＝ Net Sales / Average Trade Receivables.
(2) Days Sales Outstanding ＝365 / Average Collection Turnover.
(3) Average Inventory Turnover ＝Cost of Sales / Average Inventory.
(4) Average Payment Turnover ＝Cost of Sales / Average Trade Payables.
(5) Average Inventory Turnover Days ＝365 / Average Inventory Turnover.
(6) Fixed Assets Turnover ＝Net Sales / Net Fixed Assets.
(7) Total Assets Turnover ＝Net Sales / Total Assets.
d. Profitability Analysis
(1) Return on Total Assets ＝(Net Income + Interest Expenses * (1 - Effective Tax Rate) ) / Average Total Assets.
(2) Return on Equity ＝Net Income / Average Shareholders' Equity.
(3) Net Margin ＝Net Income / Net Sales.
(4) Earnings Per Share ＝(Net Income - Preferred Stock Dividend) / Weighted Average Number of Shares Outstanding.
e. Cash Flow
(1) Cash Flow Ratio ＝Net Cash Provided by Operating Activities / Current Liabilities.
(2) Cash Flow Adequacy Ratio ＝Five-year Sum of Cash from Operations / Five-year Sum of Capital Expenditures, Inventory Additions, and Cash Dividend.
(3) Cash Flow Reinvestment Ratio ＝(Cash Provided by Operating Activities - Cash Dividends) / (Gross Fixed Assets + Investments + Other Assets + Working
Capital).
f. Leverage
(1) Operating Leverage ＝(Net Sales - Variable Cost) / Income from Operations.
(2) Financial Leverage ＝Income from Operations / (Income from Operations – Interest Expenses)
3. 2013 Supervisor's Report
HTC CORPORATION
Supervisors Audit Report
The Board of Directors has prepared the Company's 2013 Financial Statements. HTC Corporation's Financial
Statements have been audited and certified by Yang, Ming-Hsien, CPA, and Hsu Wen-Ya, CPA, of Deloitte &
Touche and an audit report relating to the Financial Statements has been issued. The Financial Statements
has been reviewed and considered to be complied with relevant rules by the undersigned, the supervisor of
HTC Corporation. According to Article 219 of the Company Law, I hereby submit this report.
HTC CORPORATION
Supervisor:
Huang-Chieh Chu
Supervisor:
Way-Chih Investment Co., Ltd.
Representative:
Shao-Lun Lee
March 28, 2013