TSM Debt-to-Equity Ratio Analysis
Higher than 43% of Technology sector peers
Updated 9h ago·SEC filings & market data
Key Takeaway
TSM's debt-to-equity ratio of 0.15x means the company uses only 15 cents of debt for every dollar of shareholders' equity—a simple measure of financial leverage showing a conservative capital structure.
Sector Performance
43th percentileTSM
0.15x
Sector Median
0.20x
Sector Avg
0.28x
Prior Period
0.18x(Jul 2026)
Deep Analysis
TSM's debt-to-equity ratio of 0.15x means the company uses only 15 cents of debt for every dollar of shareholders' equity—a simple measure of financial leverage showing a conservative capital structure.
This sits below the sector median of 0.23x, placing TSM at the 42nd percentile among technology peers, so it carries less debt than most of its sector. The year-over-year change is N/A, while the quarter-over-quarter change shows a decline of -16.7% from the prior reading of 0.18x, indicating the debt load is shrinking relative to equity. The combination of a low absolute level and a recent downward trend points to a modest financial risk profile, which can reduce vulnerability during downturns and free up cash flow for operations or growth. This metric directly supports the BULLISH verdict on TSM, as lower leverage strengthens balance-sheet stability and aligns with expectations of sustained performance.
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 0.15x compares to a Technology sector median of 0.20x, placing it in the 43th percentile.
Who are TSM's closest peers by Debt-to-Equity Ratio?
The closest Technology peers by Debt-to-Equity Ratio include: PTC (0.41x), CAMT (0.71x), AVGO (0.74x), U (0.75x), AAPL (0.80x).
Learn More About Debt-to-Equity Ratio
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Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
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.
Master TSM's Valuation
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0.15x
Sector Median
0.20x
Sector Avg
0.28x
How TSM's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.