TSM Debt-to-Equity Ratio Analysis

Taiwan Semiconductor’s debt-to-equity ratio of 0.16x means the company owes only $0.16 in debt for every $1 of shareholder equity, indicating a low-leverage balance sheet.

That level sits just under the technology sector median of 0.17x, placing TSM at the 44th percentile among peers, so its debt load is slightly lighter than most comparable firms. The most recent quarter shows the ratio rose 6.7% from 0.15x to 0.16x, while year-over-year data is unavailable, making the short-term uptick the only measurable movement. The combination of a low absolute level with a modest quarterly increase suggests manageable financing risk despite a slight shift toward more borrowing. Because the ratio remains below the sector median and well within a conservative range, the metric supports the BULLISH verdict, as low debt enhances financial flexibility for capital-intensive semiconductor manufacturing. The small rise does not contradict that outlook, given the still-modest leverage base.

Frequently Asked Questions

Closest Sector Peers