HTC 2014 Annual Report Download - page 86

• Financial information Financial information •
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3. Financial Analysis for the Past Five Fiscal Years
(1) Financial Analysis for the Past Five Fiscal Years
Item
Year
2014 2013 2012 2011 2010
Capital
Structure
Analysis
Debt Ratio（％） 51 54 59
Financial analysis was based on ROC
GAAP
Long-term Fund to Fixed Assets Ratio（％） 431 393 407
Liquidity
Analysis
Current Ratio（％） 103 97 103
Quick Ratio（％） 80 72 82
Debt Services Coverage Ratio（％） 94 (195) 52,916
Operating
Performance
Analysis
Average Collection Turnover（Times）5.65 5.43 5.02
Days Sales Outstanding 65 67 73
Average Inventory Turnover ( Times）7.66 7.12 7.85
Average Payment Turnover ( Times）3.65 2.62 2.84
Average Inventory Turnover Days 48 51 46
Fixed Assets Turnover（Times）9.37 9.83 13.72
Total Assets Turnover（Times）1.07 1.16 1.37
Profitability
Analysis
Return on Total Assets（％） 0.90 (0.72) 7.57
Return on Equity（％） 1.88 (1.68) 18.52
Ratio of income before tax to paid-in capital （％） 18.34 (15.26) 198.73
Net Margin（％） 0.85 (0.68) 6.21
Basic Earnings Per Share（NT$）1.80 (1.60) 20.21
Cash Flow
Cash Flow Ratio（％） 0.72 (14.76) 19.50
Cash Flow Adequacy Ratio（％） 110.33 113.13 128.67
Cash Flow Reinvestment Ratio（％） 0.65 (17.28) (12.04)
Leverage
Operating Leverage 37.00 (5.87) 2.37
Financial Leverage 1 1 1
1. Capital Structure & Liquidity Analyses
As of year-end 2014, our debt ratio stood at 51% lower than last year level and current and quick ratios were
both lower at 103% and 80%, respectively. This was because the weight of decrease in current and quick ratio
for 2014 was lower than that in current liabilities. The long-term funds to fixed asset ratio for 2014 increased to
431% compared to 2013 due to profiting from loss with increased equity.
2. Operating Performance Analysis
Due to decline in revenue, fixed asset turnover, total asset turnover, and average collection turnover were all
lower than the previous year. Operation cost also lowered, inventory and account payable items also decreased,
causing inventory turnover days and payment turnover days to be raised compared to the previous year.
3. Profitability Analysis
Though experiencing decrease in revenue for 2014 due to competition in international markets, HTC managed to
profit in 2014 from loss with effective control on operating costs and savings on operating expenses. Profitability
ratio rose compared to the previous year with $1.80 for basic earnings per share.
4. Cash Flow Analysis
In 2014, HTC managed to profit from loss with a good inventory management and end-term receipt of cash for its
account receivables. Net cash flow from operating activities turned into net inflow while both cash flow ratio and
cash reinvestment ratio turned positive. Cash flow adequacy ratio decreased to 110.33% compared to 2013 because of
decrease in cash flow in 2014 from the operating activities for the last five years.
(2) Financial Analysis – ROC GAAP
Item
Year
2014 2013 2012 2011 2010
Capital
Structure
Analysis
Debt Ratio（％）
Financial analysis was based on IFRS
60 59 59
Long-term Fund to Fixed Assets Ratio（％） 403 658 683
Liquidity
Analysis
Current Ratio（％） 103 123 144
Quick Ratio（％） 80 100 120
Debt Services Coverage Ratio（％） 52,892 6,806 967,203
Operating
Performance
Analysis
Average Collection Turnover（Times）5.02 6.95 5.92
Days Sales Outstanding 73 53 62
Average Inventory Turnover ( Times）7.85 12.11 11.77
Average Payment Turnover ( Times）2.78 4.85 4.59
Average Inventory Turnover Days 46 30 31
Fixed Assets Turnover（Times）13.58 29.51 25.14
Total Assets Turnover（Times）1.36 1.83 1.49
Profitability
Analysis
Return on Total Assets（％） 8 29 26
Return on Equity（％） 18 70 56
Paid-in Capital Ratio（％）
Operating
Income 173 761 517
Pre-tax
Income 199 820 544
Net Margin（％） 6 14 14
Basic Earnings Per Share（NT$）20.17 73.32 46.18
Cash Flow
Cash Flow Ratio（％） 19 58 37
Cash Flow Adequacy Ratio（％） 129 163 157
Cash Flow Reinvestment Ratio（％） (12) 52 26
Leverage
Operating Leverage 2.37 1.35 1.43
Financial Leverage 1 1 1