TSMBULLISH

TSM Current Ratio Analysis

2.46x

Higher than 60% of Technology sector peers

Updated 853h ago·SEC filings & market data

Key Takeaway

The current ratio of 2.46x means TSM holds $2.46 in short-term assets for every $1 of short-term liabilities due within a year, indicating a solid liquidity buffer for funding operations and capital investments.

Sector Performance

60th percentile

TSM

2.46x

Sector Median

1.99x

Sector Avg

16.56x

Prior Period

2.49x(Jul 2026)

↓ Declining
📊

Deep Analysis

The current ratio of 2.46x means TSM holds $2.46 in short-term assets for every $1 of short-term liabilities due within a year, indicating a solid liquidity buffer for funding operations and capital investments.

This level exceeds the Technology sector median of 1.99x, placing the company at the 62nd percentile among peers, so TSM carries more liquidity cushion than over half of comparable firms. Trend data is unavailable, with no year-over-year or quarter-over-quarter changes reported, so the assessment relies on this single snapshot rather than any directional movement. The combination of an above-median level and a mid-to-high peer rank implies a lower risk of near-term cash shortfalls, which is particularly relevant for a semiconductor manufacturer with heavy capital expenditure needs. No momentum

Frequently Asked Questions

What does the Current Ratio tell investors about TSM?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does TSM's Current Ratio compare to its sector?

TSM's Current Ratio of 2.46x compares to a Technology sector median of 1.99x, placing it in the 60th percentile.

Who are TSM's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: CRWD (1.53x), SMAR (1.51x), ASML (1.36x), ACN (1.34x), BR (1.24x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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TSM

2.46x

Sector Median

1.99x

Sector Avg

16.56x

How TSM's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.