4.1. 2012-2014 Conslidated Financial Analysis – MediaTek & Subsidiaries – Based on IFRS
Financial Analysis | Analysis Item | 2012 | 2013 | 2014 |
---|---|---|---|---|
Capital structure analysis | Debt ratio (%) | 16.61 | 24.47 | 29.48 |
Capital structure analysis | Long-term fund to property, plant and equipment ratio %) | 1,635.89 | 1,727.71 | 1,063.17 |
Liquidity Analysis | Current ratio (%) | 357.02 | 263.49 | 244.59 |
Liquidity Analysis | Quick ratio (%) | 311.52 | 245.97 | 220.40 |
Liquidity Analysis | Times interest earned (Times) | 151.61 | 202.25 | 110.34 |
Operating performance analysis | Average collection turnover (Times) | 11.88 | 11.58 | 12.88 |
Operating performance analysis | Days sales outstanding | 31 | 32 | 28 |
Operating performance analysis | Average inventory turnover(Times) | 4.05 | 5.36 | 5.07 |
Operating performance analysis | Average payment turnover (Times) | 6.44 | 7.63 | 8.55 |
Operating performance analysis | Average inventory turnover days | 90 | 68 | 72 |
Operating performance analysis | Property, plant and equipment turnover (Times) | 9.64 | 12.34 | 12.31 |
Operating performance analysis | Total assets turnover (Times) | 0.55 | 0.58 | 0.70 |
Profitability analysis | Return on total assets (%) | 8.73 | 11.77 | 15.35 |
Profitability analysis | Return on equity attributable to owners of the parent %) | 10.66 | 14.82 | 20.95 |
Profitability analysis | Pre-tax income to paid-in capital (%) | 122.17 | 218.91 | 333.12 |
Profitability analysis | Net margin (%) | 15.66 | 20.20 | 21.78 |
Profitability analysis | Earnings per share (NT$) Before adjustments | 12.81 | 20.51 | 30.04 |
Profitability analysis | Earnings per share (NT$) After adjustments | 12.81 | 20.51 | N/A |
Cash flow | Cash flow ratio (%) | 34.58 | 64.47 | 43.62 |
Cash flow | Cash flow adequacy ratio (%) (Note) | 125.00 | 141.34 | 105.66 |
Cash flow | Cash flow reinvestment ratio (%) | 0.65 | 14.68 | 10.75 |
Leverage | Operating leverage | 5.72 | 4.13 | 3.60 |
Leverage | Financial leverage | 1.01 | 1.01 | 1.01 |
Changes that exceed 20% in the past two years and explanation for those changes:
(1) Debt ratio increased by 20%, primarily due to increase in short-term borrowings and other payables.
(2) Long-term capital to property, plant and equipment ratio decreased by 38%, primarily due to increase in property, plant and equipment.
(3) Times interest earned decreased by 45%, primarily due to increase in interest expenses.
(4) Total assets turnover increased by 20%, primarily due to increase in operating income.
(5) Return on total assets increased by 30%, return on equity increased by 41%, pre-tax income to paid-in capital increased by 52% and basic earnings per share increased by 46%, primarily due to increase in net income before income tax and net income.
(6) Cash flow ratio decreased by 32%, primarily due to increase in current liabilities.
(7) Cash flow adequacy ratio decreased by 25%, primarily due to increase in capital expenditure, inventory and cash dividend distribution.
(8) Cash flow reinvestment ratio decreased by 27%, primarily due to increase in working capital and cash dividend distribution.
Note: 2008-2011 cash inflows from operating activities were in ROC GAAP.
4.2. 2010-2011 Consolidated Financial Analysis – MediaTek & Subsidiaries – Based on ROC GAAP
Financial Analysis | Analysis Item | 2010 | 2011 |
---|---|---|---|
Capital structure analysis | Debt ratio (%) | 19.07 | 21.26 |
Capital structure analysis | Long-term fund to fixed assets (%) | 1,430.79 | 1,187.31 |
Liquidity Analysis | Current ratio (%) | 436.65 | 368.22 |
Liquidity Analysis | Quick ratio (%) | 391.83 | 335.08 |
Liquidity Analysis | Times interest earned (Times) | N/A | 1,515.53 |
Operating performance analysis | Average collection turnover (Times) | 15.17 | 11.28 |
Operating performance analysis | Days sales outstanding | 24 | 32 |
Operating performance analysis | Average inventory turnover (Times) | 4.35 | 3.57 |
Operating performance analysis | Average payment turnover (Times) | 5.21 | 5.45 |
Operating performance analysis | Average inventory turnover days | 84 | 102 |
Operating performance analysis | Fixed assets turnover (Times) | 15.45 | 9.86 |
Operating performance analysis | Total assets turnover (Times) | 0.82 | 0.61 |
Profitability analysis | Return on total assets (%) | 22.37 | 9.53 |
Profitability analysis | Return on equity (%) | 28.05 | 11.94 |
Profitability analysis | Income to paid-in capital (%) Operating income | 282.54 | 107.58 |
Profitability analysis | Income to paid-in capital (%) Pre-tax income | 293.54 | 123.77 |
Profitability analysis | Net margin (%) | 27.25 | 15.68 |
Profitability analysis | Earnings Per Share (NT$) Before adjustments | 28.44 | 12.35 |
Profitability analysis | Earnings Per Share (NT$) After adjustments | 28.44 | 12.35 |
Cash flow | Cash flow ratio (%) | 114.04 | 54.91 |
Cash flow | Cash flow adequacy ratio (%) | 149.03 | 125.42 |
Cash flow | Cash flow reinvestment ratio (%) | 1.00 | (4.99) |
Leverage | Operating leverage | 2.68 | 5.27 |
Leverage | Financial leverage | 1.00 | 1.00 |
4.3. 2012-2014 Financial Analysis – Parent Company – Based on IFRS
Financial Analysis | Analysis Item | 2012 | 2013 | 2014 |
---|---|---|---|---|
Capital structure analysis | Debt ratio (%) | 11.41 | 15.25 | 22.58 |
Capital structure analysis | Long-term fund to property, plant,, and equipment ratio (%) | 2,792.41 | 3,084.74 | 2,693.91 |
Liquidity Analysis | Current ratio (%) | 235.06 | 210.25 | 211.94 |
Liquidity Analysis | Quick ratio (%) | 182.63 | 190.46 | 198.88 |
Liquidity Analysis | Times interest earned (Times) | 9,414.56 | 1,393.09 | 294.80 |
Operating performance analysis | Average collection turnover (Times) | 15.98 | 13.20 | 14.15 |
Operating performance analysis | Days sales outstanding | 23 | 28 | 26 |
Operating performance analysis | Average inventory turnover (Times) | 3.89 | 5.31 | 5.94 |
Operating performance analysis | Average payment turnover (Times) | 6.05 | 7.89 | 9.43 |
Operating performance analysis
| Average inventory turnover days | 94 | 69 | 61.47 |
Operating performance analysis
| Property, plant, and equipment turnover (Times) | 9.93 | 15.26 | 17.57 |
Operating performance analysis
| Total assets turnover (Times) | 0.38 | 0.45 | 0.50 |
Profitability analysis | Return on total assets (%) | 9.28 | 12.85 | 16.93 |
Profitability analysis | Return on equity attributable to shareholders of the parent (%) | 10.69 | 14.84 | 20.97 |
Profitability analysis | Pre-tax income to paid-in capital (%) | 120.97 | 216.40 | 318.81 |
Profitability analysis | Net margin (%) | 24.55 | 28.59 | 34.05 |
Profitability analysis | Basic earnings per share (NT$) Before adjustments | 12.81 | 20.51 | 30.04 |
Profitability analysis | Basic earnings per share (NT$) After adjustments | 12.81 | 20.51 | N/A |
Cash flow | Cash flow ratio (%) | 21.33 | 92.35 | 101.08 |
Cash flow | Cash flow adequacy ratio (%) | 91.43 | 96.33 | 116.95 |
Cash flow | Cash flow reinvestment ratio (%) | (3.39) | 9.81 | 21.41 |
Leverage | Operating leverage | 7.65 | 3.72 | 3.00 |
Leverage | Financial leverage | 1.00 | 1.00 | 1.01 |
Changes that exceed 20% in the past two years and explanation for those changes:
(1) Debt ratio increased by 48%: primarily due to increase in short-term borrowings and other payables.
(2) Times interest earned decreased by 79%: primarily due to increase in interest expenses.
(3) Return on total assets increased by 32%, return on equity increased by 41%, pre-tax income to paid-in capital increased by 47% and basic earnings per share increased by 46%: primarily due to increase in net income before income tax and net income.
(4) Cash flow adequacy ratio increased by 21%, and cash flow reinvestment ratio increased by 118%: primarily due to increase in net cash flow from operating activities.
Note: 2008-2011 cash inflows from operating activities were in ROC GAAP.
4.4. 2010-2011 Financial Analysis – Parent Company – Based on ROC GAAP
Financial Analysis | Analysis Item | 2010 | 2011 |
---|---|---|---|
Capital structure analysis | Debt ratio (%) | 17.03 | 15.76 |
Capital structure analysis | Long-term fund to fixed assets (%) | 1,656.42 | 1,788.03 |
Liquidity Analysis | Current ratio (%) | 268.84 | 204.95 |
Liquidity Analysis | Quick ratio (%) | 230.82 | 173.21 |
Liquidity Analysis | Times interest earned (Times) | N/A | 3,086.44 |
Operating performance analysis | Average collection turnover (Times) | 20.03 | 14.17 |
Operating performance analysis | Days sales outstanding | 18 | 26 |
Operating performance analysis | Average inventory turnover (Times) | 3.85 | 3.42 |
Operating performance analysis | Average payment turnover (Times) | 4.73 | 4.84 |
Operating performance analysis | Average inventory turnover days | 95 | 107 |
Operating performance analysis | Fixed assets turnover (Times) | 11.39 | 8.13 |
Operating performance analysis | Total assets turnover (Times) | 0.54 | 0.39 |
Profitability analysis | Return on total assets (%) | 23.14 | 9.99 |
Profitability analysis | Return on equity (%) | 28.07 | 11.95 |
Profitability analysis | Income to paid-in capital (%) Operating income | 156.98 | 42.18 |
Profitability analysis | Income to paid-in capital (%) Pre-tax income | 292.68 | 121.64 |
Profitability analysis | Net margin (%) | 43.01 | 25.30 |
Profitability analysis | Earnings Per Share (NT$) Before adjustments | 28.44 | 12.35 |
Profitability analysis | Earnings Per Share (NT$) After adjustments | 28.44 | 12.35 |
Cash flow | Cash flow ratio (%) | 70.59 | 38.50 |
Cash flow | Cash flow adequacy ratio (%) | 127.62 | 104.22 |
Cash flow | Cash flow reinvestment ratio (%) | (11.91) | (12.41) |
Leverage | Operating leverage | 2.94 | 7.52 |
Leverage | Financial leverage | 1.00 | 1.00 |
Glossary:
1. Capital Structure Analysis:
(1). Debt ratio = Total liabilities / Total assets
(2). Long-term fund to property, plant and equipment ratio = (Shareholders’ equity + non-current liabilities) / Net property, plant and equipment
2. Liquidity Analysis:
(1). Current ratio = Current assets / Current liabilities
(2). Quick ratio = (Current assets – inventories – prepaid expenses) / Current liabilities
(3). Times interest earned = Earnings before interest and taxes / Interest expenses
3. Operating Performance Analysis:
(1). Average collection turnover = Net sales / Average trade receivables
(2). Days sales outstanding = 365 / Average collection turnover
(3). Average inventory turnover = Operating costs / Average inventory
(4). Average payment turnover = operating costs / Average trade payables
(5). Average inventory turnover days = 365 / Average inventory turnover
(6). Property, plant and equipment turnover = Net sales / Average property, plant and equipment
(7). Total assets turnover = Net sales / total assets
4. Profitability Analysis:
(1). Return on total assets = [Net income + Interest expenses x (1 – tax rate)] / Average total assets
(2). Return on equity attributable to shareholders of the parent = Net income attributable to shareholders of the parent / Average equity attributable to shareholders of the parent
(3). Net margin = Net income / Net sales
(4). Earnings per share = (Net income attributable to shareholders of the parent – preferred stock dividend) / Weighted average number of shares outstanding
5. 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 property, plant and equipment + long-term investments + other noncurrent assets + working capital)
6. Leverage:
(1). Operating leverage = (Net sales – variable cost) / Operating income
(2). Financial leverage = Operating income / (Operating income – interest expenses)
Glossary (ROC GAAP):
1. 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
2. Liquidity Analysis:
(1). Current ratio = Current assets / Current liabilities
(2). Quick ratio = (Current assets – Inventories – Prepaid expenses) / Current liabilities
(3). Times interest earned = Earnings before interest and taxes / Interest expenses
3. Operating Performance Analysis:
(1). Average collection turnover = Net sales / Average trade receivables
(2). Days sales outstanding = 365 / Average collection turnover
(3). Average inventory turnover = Operating costs / Average inventory
(4). Average payment turnover = operating costs / Average trade payables
(5). Average inventory turnover days = 365 / Average inventory turnover
(6) Fixed assets turnover = Net sales / Average net fixed assets
(7). Total assets turnover = Net sales / Average total assets
4. Profitability Analysis:
(1). Return on total assets = [Net income + Interest expenses x (1 – 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
5. 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 + Long-term investments + other assets + working capital)
6. Leverage:
(1). Operating leverage = (Net sales – variable cost) / Operating income
(2). Financial leverage = Operating income / (Operating income – interest expenses)