HTC 2015 Annual Report Download - page 92
Download and view the complete annual report
Please find page 92 of the 2015 HTC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Financial information
Financial information
180
181
(3) Consolidated Financial Analysis - IFRS
Item
Year
As of
2016.
03.31
2015 2014 2013 2012 2011
Capital Structure
Analysis
DebtRatio(%) 50 51 55 61
Financial
analysis
was based
on ROC
GAAP
48
Long-termFundtoFixedAssetsRatio(%) 420 343 304 309 413
Liquidity Analysis
CurrentRatio(%) 134 132 118 108 138
QuickRatio(%) 98 104 87 85 97
DebtServicesCoverageRatio(%) ( 1,917 ) 118 ( 22 ) 11,347 ( 588 )
Operating
Performance
Analysis
Average Collection Turnover (Times) 4.53 6.41 5.83 5.27 3.29
Days Sales Outstanding 81 57 63 69 111
AverageInventoryTurnover(Times) 4.80 6.34 5.81 6.96 2.44
AveragePaymentTurnover(Times) 2.72 3.27 2.69 2.84 1.94
AverageInventoryTurnoverDays 76 58 63 52 150
Fixed Assets Turnover (Times) 6.26 7.67 7.89 12.12 0.98
Total Assets Turnover (Times) 0.83 1.12 1.07 1.25 0.12
Profitability
Analysis
ReturnonTotalAssets(%) ( 10.59 ) 0.88 (0.69) 7.61 ( 2.11 )
ReturnonEquity(%) ( 21.41 ) 1.88 (1.68) 19.3 ( 4.14 )
Ratio of income before tax to paid-in
capital(%) (187.31) 23.75 (2.32) 228.37 (30.16)
NetMargin(%) ( 12.77 ) 0.79 (0.65) 6.1 (17.65)
BasicEarningsPerShare(NT$) ( 18.79 ) 1.80 (1.60) 20.21 (3.16)
Cash Flow
CashFlowRatio(%) ( 20.24 ) ( 0.41 ) ( 17.17 ) 18.69 (6.16)
CashFlowAdequacyRatio(%) 88.82 105.69 109.71 126.39 104.17
CashFlowReinvestmentRatio(%) (16.91) (0.36) ( 19.78 ) (10.66) ( 4.45 )
Leverage
Operating Leverage ( 0.71 ) 37.00 ( 5.87 ) 2.37 ( 0.80 )
Financial Leverage 1 1 1 1 1
1. Capital Structure & Liquidity Analyses
Owing to net cash outflow for operating activities in 2015, the decrease in quick asset has resulted in
decline in quick ratio. Debt ratio was lower compared to previous year due to decrease in purchase and
payables for royalty and operating expenses. Long-term funds to fixed asset ratio was higher compared
to previous year given lowered book value for fixed asset after impairment assessment and strict capex
control.
2. Operating Performance Analysis
Due to decline in revenue as a result of intensified competition and weak global economics, our fixed
asset turnover and total asset turnover were all lower compared to previous year, while days sales
outstanding and inventory turnover days were higher compared to the previous year.
3. Profitability Analysis
Profitabilitydeclinedcomparedtothepreviousyearduetoproducttransitionandintensified
competition in smartphone market.
4. Cash Flow Analysis
As we recorded a loss in 2015, our net cash outflow from operating activities saw an increase from the
previous year, resulting in negative cash flow ratio and lower cash flow adequacy ratio.
(4) Consolidated Financial Analysis – ROC GAAP
Item(Note1)
Year
2015 2014 2013 2012 2011
Capital
Structure
Analysis
DebtRatio(%)
FinancialanalysiswasbasedonIFRS
61 60
Long-termFundtoFixedAssetsRatio(%) 313 476
Liquidity
Analysis
CurrentRatio(%) 111 126
QuickRatio(%) 85 102
DebtServicesCoverageRatio(%) 11,342 2,307
Operating
Performance
Analysis
Average Collection Turnover (Times) 5.27 7.23
Days Sales Outstanding 69 50
AverageInventoryTurnover (Times) 6.96 10.55
AveragePaymentTurnover (Times) 2.79 4.66
AverageInventoryTurnoverDays 52 35
Fixed Assets Turnover (Times) 12.26 21.65
Total Assets Turnover (Times) 1.25 1.82
Profitability
Analysis
ReturnonTotalAssets(%) 8 28
ReturnonEquity(%) 19 70
Paid-inCapitalRatio(%) OperatingIncome 221 807
Pre-taxIncome 228 838
NetMargin(%) 6 13
BasicEarningsPerShare(NT$) 20.17 73.32
Cash Flow
CashFlowRatio(%) 18 58
CashFlowAdequacyRatio(%) 126 158
CashFlowReinvestmentRatio(%) ( 11 ) 53
Leverage
Operating Leverage 2.37 1.35
Financial Leverage 1 1
Note 1: Glossary
a. Financial Structure
(1) Debt Ratio=Total Liabilities / Total Assets.
(2)RatioofLong-TermCapitalToProperty,PlantAndEquipment=
(TotalEquity+Non-CurrentLiabilities)/NetWorthofProperty,
PlantAndEquipment
b. Solvency
(1) Current Ratio=Current Assets / Current Liabilities.
(2)QuickRatio=(CurrentAssets-Inventories-PrepaidExpenses)/
Current Liabilities.
(3)InterestCoverageRatio=IncomebeforeIncomeTaxAnd
InterestExpenses/CurrentInterestExpenses
c. Operating ability
(1) Receivables (including accounts receivable and notes receivable
arising from business oeprations) turnover rate = net sales /
average receivables (including accounts receivable and notes
receivable arising from business operations) for each period
(2)DaysSalesOutstanding=365/AverageCollectionTurnover.
(3)AverageInventoryTurnover=CostofSales/AverageInventory.
(4)Payables(IncludingAccountsPayableandNotesPayableArising
fromBusinessOperations)TurnoverRate=CostofSale/Average
Payables(IncludingAccountsPayableandNotesPayableArising
fromBusinessOperations)ForEachPeriod
(5)AverageInventoryTurnoverDays=365/AverageInventory
Turnover.
(6)Property,PlantandEquipmentTurnoverRate=NetSales/
AverageNetWorthofProperty,PlantandEquipment
(7) Total Asset Turnover Rate = Net Sales / Average Total Assets
d.Profitability
(1)ReturnonTotalAssets=(NetIncome+InterestExpenses*(1-
Effective Tax Rate) ) / Average Total Assets.
(2)ReturnonEquity=NetIncome/AverageTotalEquity.
(3)ProfitMarginbeforeTax=NetIncome/NetSales
(4)EarningsperShare=(ProfitAndLossAttributabletoOwnersof
theParent–DividendsonPreferredShares)/WeightedAverage
NumberofIssuedShares
e. Cash Flow
(1)CashFlowRatio=NetCashProvidedbyOperatingActivities/
Current Liabilities.
(2) Net Cash Flow Adequacy Ratio = Net Cash Flow from
OperatingActivitiesfortheMostRecentFiveYears/(Capital
Expenditures+InventoryIncrease+CashDividend)Additions,
and Cash Dividend.
(3)CashFlowReinvestmentRatio=(NetCashFlowfrom
OperatingActivities–CashDividend)/GrossProperty,Plant
andEquipmentValue+Long-TermInvestment+OtherNon-
CurrentAssets+WorkingCapital)
f. Leverage
(1) Operating Leverage = (Net Operating Revenue – Variable
OperatingCostsandExpenses)/OperatingIncome
(2)FinancialLeverage=OperatingIncome/(OperatingIncome/
InterestExpenses)