TSM Quick Ratio Analysis
Higher than 75% of Technology sector peers
Updated 9h ago·SEC filings & market data
Key Takeaway
The quick ratio measures whether a company can cover its immediate debts with its most liquid assets, like cash and receivables, excluding inventory; a value above 1.0x indicates sufficient short-term liquidity.
Sector Performance
75th percentileTSM
1.92x
Sector Median
1.25x
Sector Avg
17.80x
Prior Period
1.98x(Jul 2026)
Deep Analysis
The quick ratio measures whether a company can cover its immediate debts with its most liquid assets, like cash and receivables, excluding inventory; a value above 1.0x indicates sufficient short-term liquidity.
At 1.92x, TSM holds nearly twice as many liquid assets as current liabilities, which is a strong buffer. This exceeds the sector median of 1.25x, placing TSM at the 73rd percentile among technology peers, meaning only about a quarter of peers have a higher quick ratio. The trend is not available: the year-over-year change is N/A, and the quarter-over-quarter change is also N/A, so this reading is a single snapshot with no historical direction. Given the high absolute level and no declining trend to offset it, the liquidity position presents a low near-term solvency risk and supports financial flexibility for capital spending. This metric directly reinforces the overall BULLISH verdict, as the strong quick ratio is consistent with a company that can fund operations and investments without distress.
Frequently Asked Questions
What does the Quick Ratio tell investors about TSM?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does TSM's Quick Ratio compare to its sector?
TSM's Quick Ratio of 1.92x compares to a Technology sector median of 1.25x, placing it in the 75th percentile.
Who are TSM's closest peers by Quick Ratio?
The closest Technology peers by Quick Ratio include: APH (1.17x), BR (1.08x), ASAN (1.04x), ORCL (1.00x), AAPL (0.91x).
Learn More About Quick Ratio
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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1.92x
Sector Median
1.25x
Sector Avg
17.80x
How TSM's Quick Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.