AU OPTRONICS CORP (ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory)

37.	Capital Management

Through clear understanding and managing of significant changes in external environment, related industry characteristics, and corporate growth plan, the Company manages its capital structure to ensure it has sufficient financial resources to sustain proper liquidity, to invest in capital expenditures and research and development expenses, to repay debts and to distribute dividends in accordance to its plan. The management pursues the most suitable capital structure by monitoring and maintaining proper financial ratios as below. The Company aims to enhance the returns of its shareholders through achieving an optimized debt-to-equity ratio from time to time.

	December 31,
	2017			2016
	(in thousands)
Total liabilities	$	217,352,838			229,024,452
Total equity		212,817,851			176,836,313
Interest-bearing debts		114,032,386			124,789,343
Debt-to-equity ratio		102	%		130	%
Interest-bearing debt-to-equity ratio		54	%		71	%
Net debt-to-equity ratio⁽¹⁾		4	%		25	%

(1) Net debt-to-equity ratio is defined as interest-bearing debts less cash and cash equivalents divided by total equity.

AU OPTRONICS CORP | CIK:0001172494 |

ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory