At the end of 3Q09, total cash and marketable securities decreased by NT$66.45 billion to NT$180.32 billion. We paid NT$76.88 billion for cash dividends and generated NT$14.62 billion of free cash flow during this quarter.
Total current liabilities decreased by NT$74.62 billion in this quarter, primarily due to payment of cash dividends.
Net working capital was NT$189.23 billion and current ratio increased to 4.4x.
III - 2. Receivable/Inventory Days (In Number of Days) 3Q09 2Q09 3Q08 Days of Receivable 36 30 43 Days of Inventory 41 42 45
Receivable and Inventory Days:
Sequentially, days of receivable increased by six days to 36 days in 3Q09, mainly due to average accounts receivable growing faster than sales. The quality of collection remains the same.
Days of inventory decreased by one day to 41 days. III - 3. Debt Service (In NT billions) 3Q09 2Q09 3Q08 Cash & Marketable Securities 180.32 246.77 158.17 Interest-Bearing Debt 15.33 15.57 23.41 Net Cash Reserves 164.99 231.20 134.76
Net cash reserves, defined as the excess of cash and short-term marketable securities over interest-bearing debt, decreased by NT$66.21 billion to NT$164.99 billion at the end of 3Q09, primarily due to cash dividend payment, net off by free cash flow generated during this quarter.
IV. Cash Flow IV - 1.1. Cash Flow Analysis (In NT billions) 3Q09 2Q09 3Q08 Net Income 30.55 24.44 30.57 Depreciation & Amortization 20.00 20.05 20.69 Employee Profit Sharing Payment* (7.49) n.a n.a Other Operating Sources/(Uses) 3.60 (19.97) 4.64 Total Operating Sources/(Uses) 46.66 24.52 55.90 Capital Expenditure (32.04) (7.42) (10.38) Marketable Financial Instruments (18.94) 1.68 (18.07) Other Investing Sources/(Uses) (0.53) (0.25) 1.93 Net Investing Sources/(Uses) (51.51) (5.99) (26.52) Cash Dividends (76.88) 0.00 (76.78) Employee Profit Sharing Payment* n.a n.a (3.94) Purchase of Treasury Stock 0.00 0.00 (23.81) Other Financing Sources/(Uses) (0.11) (0.34) (0.43) Net Financing Sources/(Uses) (76.99) (0.34) (104.96) Net Cash Position Changes (81.84) 18.19 (75.58) Exchange Rate Changes & Others (0.74) (1.93) 2.68 Ending Cash Balance 156.94 239.52 112.45 *Starting 2008, Taiwan accounting rule requires company to expense employee profit sharing
Summary of Cash Flow:
Cash generated from operating activities totaled NT$46.66 billion during the quarter, up from NT$24.52 billion in 2Q09 as a result of higher level of business activities, partially offset by NT$7.49 billion for 2008 employee profit sharing payment.
Net cash used in investing activities was NT$51.51 billion in 3Q09, reflecting the capital expenditures of NT$32.04 billion and investments in fixed income instruments of NT$14.83 billion.
Net cash used in financing activities was NT$76.99 billion during the quarter, as we paid NT$76.88 billion for cash dividends.
As a result, TSMC ended 3Q09 with a cash balance of NT$156.94 billion. IV - 2. Operating and Free Cash Flows:
Operating and Free Cash Flows:
Cash flows generated from operating activities were NT$46.66 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$14.62 billion in 3Q09, compared to NT$17.10 billion in 2Q09.