Debt-to-Equity Ratio
Higher than 38% of Technology sector peers
Updated 18h ago
Sector Performance
38th percentileTSM
0.17x
Sector Median
0.29x
Sector Avg
0.67x
Deep Analysis
A company's debt-to-equity ratio, at 0.17x, shows that for every dollar of shareholder equity, Taiwan Semiconductor Manufacturing carries only 17 cents of debt—indicating very low leverage and strong financial conservatism.
This figure sits well below the technology sector median of 0.35x, placing TSM in the 25th percentile among sector peers, meaning 75% of competitors have higher debt relative to equity. The ratio has been perfectly stable over the past eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%. The combination of an already low debt load and a flat trend suggests minimal financial risk but also signals that the company is not using debt to amplify growth, which may limit upside potential in a capital-intensive industry. This metric supports the overall NEUTRAL verdict by confirming that TSM’s balance sheet is safe yet offers no particular catalyst for outsized returns or distress.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about TSM?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does TSM's Debt-to-Equity Ratio compare to its sector?
TSM's Debt-to-Equity Ratio of 0.17x compares to a Technology sector median of 0.29x, placing it in the 38th percentile.
Who are TSM's closest peers by Debt-to-Equity Ratio?
The closest Technology peers by Debt-to-Equity Ratio include: PCTY (0.11x), NVDA (0.07x), SQ (0.07x), OKTA (0.06x), AMD (0.06x).
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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0.17x
Sector Median
0.29x
Sector Avg
0.67x
How TSM's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.