Abstract With the critical development trend of industry of the world, TFT-LCD industry, following the footstep of semi-conductive industry, has become an important leading industry of Taiwan to the economic policy of the Government. The ¡§Two Trillion Double Star¡¨plan pro- -moted by Industrial Development Bureau fo Taiwan intends to push up the production values of the two industries, semi-conductive and flat panel photonic displayer, to exceed NT$ 1 trillion respectively in 2006. This plan also promotes digital contents and biotechnical industry to be two star industries with high potentials of development. Therefore, TFT- LCD industry is undoubtedly the core industry of the next wave of econo- mic growth in Taiwan. According to the distinguishing characteristics of capital and technology density, short-lived productive cycle, and variable productive technique in TFT-LCD industry, cash flow out of investment activities became the key point to promote the competitiveness with the continuously overcharge in the next generation panel field.In addition, the investors would find that the TFT-LCD panel factories have no ability to support the cash flow out which invested in equipment if they do not ask for finance. In this paper, we attempt to investigate the relationship between variation of cash flow in operation, investment, and finance activities and potential risk of operation in enterprise by financial statement in TFT-LCD industry. In addition, this dissertation commence with ROE and development from Du-Pont Formula. Our research decomposes ROE to fundamental elements in enterprise step by step, such as the construction of cost and expense and the risk of business. Furthermore, we afford a referable approach to estimate performance of companies by Du-Pont Formula. Key Words¡G Thin Film Transistor (TFT), Liquid Crystal Display (LCD),Cash Flow, Risk, Risk Management, Du Pont Equation, Du Pont Ratio.