Page 105 - TSMC 2020 Annual Report

6 1 3 Financial Analysis
Financial Analysis
from 2016 to 2020 (Consolidated)
Capital Structure Analysis
Liquidity Analysis
Operating Performance Analysis
Profitability Analysis
Cash Flow
Leverage
Industry Specific Key Performance Indicator
Debts Ratio (%)
Long-term Fund to Property Plant and Equipment (%)
Current Ratio (%)
Quick Ratio (%)
Times Times Interest Earned (Times)
Average Collection Turnover (Times)
Days Sales Outstanding
Average Inventory Turnover (Times)
Average Inventory Turnover Days Average Payment Turnover (Times)
Property Plant and Equipment Turnover (Times)
Total Assets Turnover (Times)
Return on Total Assets (%)
Return on Equity Attributable to Shareholders of the Parent
(%)
Operating Income
to Paid-in Capital Ratio (%)
Pre-tax Income
to Paid-in Capital Ratio (%)
Net Margin (%)
Basic Earnings Per Share (NT$)
Diluted Earnings Per Share (NT$)
Cash Flow
Ratio (%)
Cash Flow
Adequacy Ratio (%)
Cash Flow
Reinvestment Ratio (%)
Operating Leverage
Financial Leverage
Billing Utilization Rate (%)
(Note)
Advanced Technologies (16-nanometer and below) Percentage of Wafer Sales (%)
Sales Growth (%)
Net Income
Growth (%)
26 31 157 17
256 95 241
34 117 74 8 8 78
41
57 8 8 18 44
62 20 11 1 02 0 53
19
03 25 60 145 76
148 84 35 27 12 89 12 89 169 63 108 57 11 51 2 15
1 1 01 92 21 12 38 9 03 23 55 153 70 238 97 217
94 119 95 7 7 74 47 16 7 88 46 32 16 82 0 95 0 0 50 17
84 23 57 148 69 152 77 35 11 13 23 13 23 163 17
112 41
11 08 2 16 1 1 01 91 32 3 11 2 65 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 41
5 5 53
2 34 28 38 123 79 139 25 124 92 120
92 7 95 45 91 6 20 58 87 15
48
0 88 0 49 15
99 20 94 143 73 150 34 32 28 13 32 13 32 104 13 106 60 8 45 2 41
1 1 01 81 50 3 3 73 -1 67 32 97 137 80
176 97 154 35 281 95 9 35 39 04 5 70 64 04 15
45 0 92 0 53
20 69 29 84 218 58 225 52 38 69 19
97 19
97 133 30
100 74 11 24 1 97 1 00 94 58 25 17
50 00 2016 2017
2018
2019
2020 Analysis
of of deviation of of 2020 vs 2019
over 20%:
1 Current ratio increased by 27% mainly due to to increase increase in in in in in cash cash and and cash cash equivalents and and inventories 2 2 Quick ratio increased by 24% mainly due to increase increase in in in in cash cash and cash cash equivalents 3 3 3 Times interest interest earned increased by 133% mainly due to increase increase in in in in in in in in pre-tax income and decrease in in in in in in in in interest interest expenses 4 4 Return on on total assets increased increased by by 29% return on on equity attributable to to shareholders of the parent increased increased by by 43% basic earnings per share share increased increased by by 50% 50% and diluted earnings per share increased increased by by 50% 50% mainly due to to increase in in in in net income attributable to to shareholders of the parent 5 5 Operating income income to paid-in capital ratio increased by 52% as as as a a a a a a a a a a result of increase increase in in in in in in in in operating income income 6 Pre-tax income income to paid-in capital ratio increased by 50% as as as a a a a a a a a a a result of increase increase in in in in in in pre-tax income income 7 Cash flow flow ratio ratio increased increased by by by 28% and cash cash flow flow reinvestment ratio ratio increased increased by by by 33% as as as as as as as a a a a a a a a a a a a a result of increase increase increase in in in in in in cash cash provided by by by operating activities Note: Capacity includes wafers committed by Vanguard and SSMC * Glossary
1 1 Capital Structure Analysis
(1) Debt Ratio = Total Total Liabilities / Total Total Assets (2) Long-term Fund to Property Property Plant Plant and and Equipment Equipment Ratio Ratio = = (Shareholders’ Equity +
Noncurrent Liabilities) / Net Property Property Plant Plant and and Equipment Equipment 2 Liquidity Analysis
(1) Current Current Current Current Ratio Ratio = = Current Current Current Current Assets Assets / Current Current Current Current Liabilities (2) Quick Ratio Ratio = = = (Current Assets Assets - - Inventories - - Prepaid Expenses) / / / Current Current Current Current Current Liabilities Liabilities (3) Times Interest Interest Interest Earned = = Earnings before Interest Interest Interest and Taxes / / Interest Interest Interest Expenses
Expenses
3 Operating Performance Analysis
(1) Average Average Average Collection Collection Turnover Turnover = = Net Sales Sales / / Average Average Average Trade Receivables
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 Equity Attributable Attributable Attributable to to to Shareholders Shareholders Shareholders of of of the the the Parent
Parent
Parent
= Net Income
Attributable Attributable Attributable to to to Shareholders Shareholders Shareholders of of of the the the Parent
Parent
Parent
/ / Average Equity Equity Attributable Attributable Attributable to to to Shareholders Shareholders Shareholders of of of the the the Parent
Parent
Parent
(3) Operating Operating Income
Income
Income
Income
to to to Paid-in Paid-in Paid-in Paid-in Capital Capital Capital Capital Ratio Ratio = = Operating Operating Income
Income
Income
Income
/ / / Paid-in Paid-in Paid-in Paid-in Capital Capital Capital Capital (4) Pre-tax Income
Income
Income
Income
Income
to to Paid-in Paid-in Paid-in Paid-in Capital Capital Capital Capital Ratio Ratio = = = Income
Income
Income
Income
Income
before Tax
/ / / Paid-in Paid-in Paid-in Paid-in Capital Capital Capital Capital (5) Net Net Net Net Margin = = Net Net Net Net Income
Income
Income
/ Net Net Net Net Sales (6) Earnings Per Share Share Share = = (Net Income
Income
Attributable to to Shareholders of of the Parent
- Preferred Stock Dividend) / Weighted Average Number of of Shares Outstanding
Cash Cash Flow
Flow
(1) Cash Cash Cash Cash Cash Flow
Flow
Flow
Ratio Ratio = = Net Cash Cash Cash Cash Cash Provided by Operating Activities / / Current Liabilities (2) Cash Cash Cash Cash Cash Flow
Flow
Adequacy Ratio Ratio = = Five-year Five-year Sum Sum of of Cash Cash Cash Cash Cash from Operations
/ / Five-year Five-year Sum Sum of of Capital Expenditures Inventory Additions and Cash Cash Cash Cash Cash Dividend (3) Cash Cash Cash Cash Flow
Reinvestment Ratio = (Cash Provided by Operating Activities - - Cash Cash Cash Cash Dividends) / (Gross Property Plant and Equipment +
+
+
Long-term Investments +
+
+
Other Noncurrent Assets +
Working Capital)
Leverage
(1) Operating Leverage
Leverage
Leverage
= = (Net Sales - - Variable Cost) / / Income
Income
Income
from from from Operations
Operations
Operations
(2) Financial Leverage
Leverage
= = Income
Income
Income
from from from Operations
Operations
Operations
/ / (Income from from from Operations
Operations
Operations
- - Interest Expenses) 103
(2) (3) (4) (5) (6) (7)
Days Sales Sales Sales Outstanding
= = = 365 / / / Average Average Average Average Average Collection Collection Turnover Turnover Turnover Average Average Average Average Average Inventory Inventory Inventory Inventory Turnover Turnover Turnover Turnover = = = Cost of Sales Sales / / / Average Average Average Average Average Inventory Inventory Inventory Inventory Average Average Average Average Average Average Inventory Inventory Inventory Inventory Turnover Turnover Turnover Turnover Days = = = 365 / / / Average Average Average Average Average Average Inventory Inventory Inventory Inventory Turnover Turnover Turnover Turnover Average Average Average Average Average Payment Turnover Turnover Turnover Turnover = = = Cost of Sales Sales / / / Average Average Average Average Average Trade Payables
Property Property Plant Plant and and Equipment Equipment Turnover Turnover = = Net Net Sales Sales / / Average Average Average Net Net Property Property Plant Plant and and Equipment Total Total Assets Assets Turnover = Net Sales / Average Total Total Assets Assets