TSMBULLISH

Debt-to-Equity Ratio

0.18x

Higher than 42% of Technology sector peers

Updated 24h ago

Sector Performance

42th percentile

TSM

0.18x

Sector Median

0.27x

Sector Avg

0.42x

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Deep Analysis

Taiwan Semiconductor Manufacturing Company’s current debt-to-equity ratio of 0.18x means that for every dollar of shareholders’ equity, the company has only 18 cents of debt.

This metric is well below the sector median of 0.27x, placing TSM in the 40th percentile among its technology peers—indicating a lower reliance on borrowed funds relative to most competitors. Because the year-over-year and quarter-over-quarter changes are not available (listed as N/A), no trend direction can be determined from the single data point provided. The combination of a conservative debt level with no available trend suggests limited financial risk from leverage, but also offers no directional insight into whether the company is increasing or reducing debt. This low debt load supports the overall NEUTRAL verdict by indicating stable financial health, though without trend data it does not point toward a strong opportunity or notable risk.

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 0.18x compares to a Technology sector median of 0.27x, placing it in the 42th percentile.

Who are TSM's closest peers by Debt-to-Equity Ratio?

The closest Technology peers by Debt-to-Equity Ratio include: ACLS (0.04x), NVDA (0.04x), PLTR (0.03x), DIOD (0.03x), AMBA (0.02x).

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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TSM

0.18x

Sector Median

0.27x

Sector Avg

0.42x

How TSM's Debt-to-Equity Ratio compares to sector peers.

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