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Taiwan Semiconductor Manufacturing Co LTD key statistics and ratios

In fiscal 2025, Taiwan Semiconductor Manufacturing Co LTD had return on equity of 36.4%, an operating margin of 50.8%, debt equal to 21.8% of equity and a current ratio of 2.51. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2015Dec 20152016Dec 20162017Dec 20172018Dec 20182019Dec 20192020Dec 20202021Dec 20212022Dec 20222023Dec 20232024Dec 20242025Dec 2025
Gross margin48.7%50.1%50.6%48.3%46.0%53.1%51.6%59.6%54.4%56.1%59.9%
Operating margin37.9%39.9%39.4%37.2%34.8%42.3%40.9%49.5%42.6%45.7%50.8%
Net margin35.9%35.0%35.3%35.2%33.1%38.1%37.3%43.9%39.4%40.0%44.6%
Free-cash-flow margin32.3%22.3%26.1%25.0%14.5%23.6%17.2%23.3%13.5%30.1%26.3%
Return on equity26.2%26.3%24.6%23.0%21.2%29.1%29.7%38.8%26.5%29.9%36.4%
Return on assets—17.7%18.1%17.8%15.9%19.9%18.2%22.6%16.0%18.8%23.9%
Asset turnover—0.510.510.510.480.520.490.510.410.470.54
Current ratio—2.352.222.671.371.732.122.082.332.362.51
Debt to equity0.0%21.1%18.2%13.0%12.8%19.1%34.3%30.2%27.3%25.3%21.8%
Interest cover (operating income ÷ interest)100.7x114.3x115.8x125.7x114.7x—120.1x77.8x50.3x66.8x96.9x
Effective tax rate13.6%14.0%12.9%8.7%9.2%12.6%10.6%13.2%13.1%17.7%17.0%
R&D as % of revenue7.8%7.5%8.3%8.3%8.5%8.2%7.9%7.2%8.4%7.1%6.5%
Capital spending as % of revenue30.5%34.6%33.8%30.6%43.0%37.9%52.9%47.8%43.9%33.0%33.4%
Free cash flow ÷ net income89.9%63.8%73.8%71.2%43.7%61.8%46.1%53.2%34.3%75.1%59.1%
Dividends ÷ net income38.5%46.9%52.6%57.1%73.3%50.8%44.9%28.7%34.3%31.3%27.5%
Dividends and buybacks ÷ free cash flow42.8%73.5%71.3%80.3%167.6%82.2%97.4%54.0%99.9%42.1%46.6%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

6 of 7 checks passed · December 31, 2025
What it owns · $252.9bn
Short-term assets $121.7bnLonger-term assets $131.2bn
What it owes, and who funded it · $251.6bn
Short-term liabilities $48.5bnLonger-term liabilities $32.3bnShareholders' equity $170.7bn
  • Short-term assets cover short-term liabilities $121.7bn of assets due within a year against $48.5bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $121.7bn short-term assets against $32.3bn of longer-dated liabilities.
  • More cash than debt $88.2bn of cash against $37.3bn of debt.
  • Debt below 40% of shareholders' equity Debt is 22% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 14% to 22% over five years.
  • A year's operating cash flow covers at least 20% of debt $73.1bn of operating cash flow against $37.3bn of debt.
  • Operating profit covers interest at least five times over Operating income of $62.2bn against $642m of interest.

From Taiwan Semiconductor Manufacturing Co LTD's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

Not assessed: fewer than five years of comparable figures in the filings. AI disruption exposure for this industry: Low.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

Head to head: MU vs TSMAVGO vs TSMINTC vs TSMNVDA vs TSM

More: Semiconductors stocks compared, Technology sector, rankings of US companies

Figures from Taiwan Semiconductor Manufacturing Co LTD's SEC filings (10-K and 10-Q), retrieved November 1, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Taiwan Semiconductor Manufacturing Co LTD.