At the end of 4Q09, cash and marketable securities totaled NT$195.80 billion, increased by NT$15.48 billion from 3Q09, primarily due to NT$19.29 billion of free cash flow generated during this quarter.
Total current liabilities increased NT$24.12 billion in this quarter, primarily due to increase in accounts payables to contractors and equipment suppliers and accruals for employee profit sharing/bonus during the quarter.
Net working capital was NT$180.67 billion and current ratio decreased to 3.3x.
III - 2. Receivable/Inventory Days
(In Number of Days)
4Q09 3Q09 4Q08
Days of Receivable 36 36 46
Days of Inventory 42 41 40
Receivable and Inventory Days:
Days of receivable remained stable at 36 days in 4Q09.
Days of inventory increased by one day from prior quarter to 42 days.
III - 3. Debt Service
(In NT billions) 4Q09 3Q09 4Q08
Cash & Marketable Securities 195.80 180.32 211.45
Interest-Bearing Debt 15.09 15.33 23.44
Net Cash Reserves 180.71 164.99 188.01
Debt Service:
Net cash reserves, defined as the excess of cash and short-term marketable securities over interest-bearing debt, increased by NT$15.72 billion to NT$180.71 billion at the end of 4Q09, primarily due to NT$19.29 billion of free cash flow generated during this quarter.
IV. Cash Flow
IV - 1.1. Cash Flow Analysis
(In NT billions) 4Q09 3Q09 4Q08
Net Income 32.67 30.55 12.45
Depreciation & Amortization 20.28 20.00 20.96
Employee Profit Sharing Payment* n.a (7.49) n.a
Other Operating Sources/(Uses) 9.05 3.60 29.83
Total Operating Sources/(Uses) 62.00 46.66 63.24
Capital Expenditure (42.71) (32.04) (11.26)
Marketable Financial Instruments (3.59) (18.94) 30.31
Other Investing Sources/(Uses) (0.80) (0.53) (1.04)
Net Investing Sources/(Uses) (47.10) (51.51) 18.01
Cash Dividends 0.00 (76.88) 0.00
Other Financing Sources/(Uses) (0.28) (0.11) (0.30)
Net Financing Sources/(Uses) (0.28) (76.99) (0.30)
Net Cash Position Changes 14.62 (81.84) 80.95
Exchange Rate Changes & Others (0.28) (0.74) 1.21
Ending Cash Balance 171.28 156.94 194.61
*Starting 2008, Taiwan accounting rule requires company to expense
employee profit sharing
Summary of Cash Flow:
Cash generated from operating activities totaled NT$62.00 billion during the quarter, an increase of NT$15.34 billion from 3Q09, mainly due to the increase in net income, the absence of the cash payment of employee profit sharing, and a decrease in net working capital.
Net cash used in investing activities decreased NT$4.41 billion to NT$47.10 billion in 4Q09, primarily reflecting less purchases of marketable financial instruments, partially offset by an increase in capital expenditures.
Net cash used in financing activities was NT$0.28 billion during the quarter.
As a result, TSMC ended 4Q09 with a cash balance of NT$171.28 billion.
IV - 1.2. Cash Flow Analysis
(In NT billions) 2009 2008 Diff.
Net Income 89.22 99.93 (10.71)
Depreciation & Amortization 80.81 81.51 (0.70)
Employee Profit Sharing Payment* (7.49) 0.00 (7.49)
Other Operating Sources/(Uses) (2.57) 40.05 (42.62)
Total Operating Sources/(Uses) 159.97 221.49 (61.52)
Capital Expenditure (87.78) (59.22) (28.56)
Marketable Financial Instruments (7.04) 52.35 (59.39)
Other Investing Sources/(Uses) (1.65) (1.17) (0.48)
Net Investing Sources/(Uses) (96.47) (8.04) (88.43)
Cash Dividends (76.88) (76.78) (0.10)
Employee Profit Sharing* 0.00 (3.94) 3.94
Repayment of Bonds Payable (8.00) 0.00 (8.00)
Purchase of Treasury Stock 0.00 (33.48) 33.48
Other Financing Sources/(Uses) (0.59) (1.19) 0.60
Net Financing Sources/(Uses) (85.47) (115.39) 29.92
Net Cash Position Changes (21.97) 98.06 (120.03)
Exchange Rate Changes & Others (1.36) 1.56 (2.92)
Ending Cash Balance 171.28 194.61 (23.33)
*Starting 2008, Taiwan accounting rule requires company to expense
employee profit sharing
