Page 94 - TSMC 2018 Annual Report

6 1 3 Financial Analysis
Financial Analysis
from 2014 to 2018 (Consolidated) (Note 1)
Capital Structure Analysis
Liquidity Analysis
Operating Performance Analysis
Profitability Analysis
Cash Flow
Leverage
Industry Specific Key Performance Indicator
19 74 163 20 279 46 248 76 131 28
8 19 44 57 6 02 60 63 16 56 0 97 0 51 17 34 21 95 147 94 153 30 34 05 13 54 13 54 168 54 113 11 11 9 06 2 2 28
1 1 01 87 63 5 5 53 2 34 by 7nm
2014 (Adjusted)
2015
2016
2017 2018 Debts Ratio (%)
30 01 26 24 26 31 23 55
Long-term Fund to Property Plant and Equipment (%)
158 16 169 34 157 17 153 70 Current Ratio (%)
311 70 351 86
256 95 238 97 Quick Ratio (%)
278 03
319 58 241 34 217 94 Times Times Interest Earned (Times) 94 34 110 84
117 74 119 95 Average Collection Turnover (Times) 8 12
8 37 8 8 78 7 7 74 Days Sales Outstanding
Average Payment Turnover (Times) 44 95 43 61
41 57 47 16 Average Inventory Turnover (Times) 7 42
6 49
8 8 18 7 88
Average Inventory Turnover Days 49
19 56 24 44 62 46 32
19 39
20 10 20 11 16 82
Property Plant and Equipment Turnover (Times) 0 95 1 1 01 1 02 0 95 Total Assets Turnover (Times) 0 55
0 54 0 53 0 0 50
Return on Total Assets (%)
19 33 19 62 19 03
17 84
Return on Equity Attributable to Shareholders of the Parent (%)
Net Margin (%)
Basic Earnings Per Share (NT$)
27 86
27 04
36 34 25 60 23 57 Operating Income to Paid-in Capital Ratio (%)
114 10 123 43 145 76 148 69 Pre-tax Income to Paid-in Capital Ratio (%)
116 50
135 14 148 84
152 77
34 58 35 27 35 11 10 18 11 82
12
89 13 23 Diluted Earnings Per Share (NT$)
10 18 11 82
12
89 13 23 Cash Flow
Ratio (%)
209 70 249 67
169 63 163 17 Cash Flow
Adequacy Ratio (%)
92 15 103 82
108 57 112 41 Cash Flow
Reinvestment Ratio (%)
13 04
13 76 11 51 11 08 Operating Leverage
2 15 2 2 26 2 15 2 16 Financial Leverage
1 1 01 1 1 01 1 1 01 1 1 01 Billing Utilization Rate (%)
(Note 2)
97 93
92 91
Advanced Technologies (28-nanometer and below) Percentage of Wafer Sales (%)
42
48 54 58 Sales Growth (%)
27 77
10 58 12
38 3 11 Net Income Growth (%)
40 25 16 18 9 03
2 65
Analysis
of of deviation of of 2018 vs 2017 over 20%:
Average inventory inventory turnover turnover (Times) decreased by by 24% and and average inventory inventory turnover turnover days increased by by 31% mainly due to to to to an an an increase increase in in in in in in in in raw wafers and and a a a a a a a a a a a a a a higher level of work-in-process inventories driven ramping Note 1: The financial statements for 2014-2018 were prepared in in accordance with 2013 Taiwan-IFRSs version Note 2: Capacity includes wafers committed by Vanguard and SSMC 92 * Glossary
1 Capital Structure Analysis
(1) Debt Ratio = Total Total Liabilities / Total Total Assets (2) Long-term Fund to Property Plant and Equipment Ratio = (Shareholders’ Equity + Noncurrent
Liabilities) / Net Property Plant and Equipment 2 Liquidity Analysis
(1) Current Current Current Ratio = Current Current Current Assets / Current Current Current Liabilities (2) Quick Ratio = (Current Assets - - Inventories - - Prepaid Expenses) / Current Current Liabilities (3) Times Interest Interest Interest Earned = Earnings before Interest Interest Interest and Taxes / Interest Interest Interest Expenses 3 Operating Performance Analysis
(1) Average Average Collection Turnover = Net Sales / Average Average Trade Receivables
(2) Days Sales Outstanding
= 365 / Average Collection Turnover (3) Average Average Inventory Inventory Turnover = Cost of Sales / Average Average Inventory Inventory (4) Average Average Inventory Inventory Turnover Turnover Days = 365 / Average Average Inventory Inventory Turnover Turnover (5) Average Average Payment Turnover = Cost of Sales / Average Average Trade Payables
(6) Property Property Plant Plant and and Equipment Equipment Turnover = Net Net Sales / Average Net Net Property Property Plant Plant and and Equipment Equipment (7) Total Total Assets Assets Turnover = Net Sales / Average Total Total Assets Assets 4 5 6 Profitability Analysis
(1) Return on Total Total Assets Assets = (Net Income + Interest Expenses * (1 (1 - Effective Tax Rate)) / Average Total Total Assets Assets (2) Return on Equity Attributable Attributable to to Shareholders Shareholders of of the Parent = Net Income Attributable Attributable to to Shareholders Shareholders of of the the Parent Parent / Average Equity Attributable to Shareholders of the the Parent Parent (3) Operating Operating Income Income to Paid-in Paid-in Capital Capital Ratio = Operating Operating Income Income / Paid-in Paid-in Capital Capital (4) Pre-tax Income Income to Paid-in Paid-in Capital Capital Ratio = Income Income before Tax / Paid-in Paid-in Capital Capital (5) Net Net Net Margin = Net Net Net Income / Net Net Net Sales (6) Earnings Per Share Share = (Net Income Attributable to to Shareholders of the Parent - Preferred Stock Dividend) / Weighted Average Number of Shares
Outstanding
Cash Flow
(1) Cash Cash Flow
Ratio = Net Cash Cash Provided by Operating Activities / Current Liabilities (2) Cash Cash Flow
Adequacy Ratio = Five-year Five-year Sum Sum of of Cash Cash from Operations / Five-year Five-year Sum Sum of of Capital Expenditures Inventory Additions and Cash Dividend (3) Cash Cash Cash Flow
Reinvestment Ratio = (Cash Provided by Operating Activities - Cash Cash Cash Dividends) / (Gross Property Plant and Equipment + + + Long-term Investments + + + Other Noncurrent
Assets + + + Working Capital)
Leverage
(1) Operating Leverage
= (Net Sales - Variable Cost) / Income from Operations (2) Financial Leverage
= Income Income from from Operations Operations / (Income from from Operations Operations - Interest Expenses)