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TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM) financial health, profit and balance sheet · Scorvest

TSM · NYSE · United States · Semiconductors & Related Devices

TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD

Hsinchu · Fiscal year ends in December · Figures in TWD

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In shortTAIWAN SEMICONDUCTOR MANUFACTURING CO LTD is profitable, generates cash and holds more cash than debt, with revenue growing (+33.9% last year).

Financial health

Strong

Built from five areas over the last five annual reports. Tap an area to see the figures behind it.

How is this score calculated? →

Profitability100

Operating marginShare of each sale left after running the business, before interest and tax.	45.7%	100/100
Net marginShare of each sale left as profit after every cost, interest and tax.	40.0%	100/100
Return on equityProfit earned on the money shareholders put in. Above 15% is strong.	30.2%	100/100
Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge.	25.1%	100/100

Weight in the score: 25%

Balance sheet100

Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash.	2.36×	100/100
Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted.	0.02×	100/100
Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable.	Net cash	100/100
Interest coverageHow many times operating profit covers interest. Below 2 is risky.	125.96×	100/100
Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress.	6.81	100/100

Weight in the score: 25%

Cash generation85

Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt.	30.1%	100/100
Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy.	0.75×	56/100
Years with positive free cash flow (last 5)	5 of 5	100/100

Weight in the score: 20%

Stability73
Profitable years (last 5) 5 of 5 100/100
Years of revenue decline (last 5) 1 of 5 67/100
Revenue growth volatility 17.9% 45/100
Operating margin volatility 3.4% 78/100
Weight in the score: 20%
Growth100
Revenue growth, 3-year average 22.2% 100/100
EPS growth, 3-year average 25.1% 100/100
Weight in the score: 10%

Profitable years (last 5)	5 of 5	100/100
Years of revenue decline (last 5)	1 of 5	67/100
Revenue growth volatility	17.9%	45/100
Operating margin volatility	3.4%	78/100

Revenue growth, 3-year average	22.2%	100/100
EPS growth, 3-year average	25.1%	100/100

Fiscal year 2024 · change vs prior year

Revenue: TWD 2.9T; ▲ 33.9%
Net income: TWD 1.2T; ▲ 36.0%
Free cash flow: TWD 870.2B; ▲ 197.9%
Operating margin: 45.7%; +3.1 pts
Cash & investments: TWD 2.1T; –
Total debt: TWD 91.7B; ▲ 570.4%
Diluted EPS: TWD44.67; ▲ 36.0%
Return on equity: 30.2%; –

Trends

Annual figures as reported. Hover a bar or point for the exact value.

5 older years available with the 10-year history. Essential plan, from €8.25/month →

Revenue and net income

RevenueNet income

Margins

Statements

The last 5 fiscal years from the company's annual reports.

TWD millions; negative values in parentheses.

Fiscal year	FY20	FY21	FY22	FY23	FY24
Revenue	1,339,255	1,587,415	2,263,891	2,161,736	2,894,308
Cost of revenue	628,125	767,878	915,537	986,625	1,269,954
Gross profit	711,130	819,537	1,348,355	1,175,111	1,624,354
Research & development	109,486	124,735	163,262	182,370	204,182
Operating income	566,784	649,981	1,121,279	921,466	1,322,053
Interest expense	2,082	5,414	11,750	11,999	10,495
Pre-tax income	584,746	663,036	1,144,072	979,317	1,405,840
Income tax	73,738	70,155	150,778	128,289	248,316
Net income	510,744	592,359	992,923	851,740	1,158,380
Diluted EPS	TWD19.70	TWD22.84	TWD38.29	TWD32.85	TWD44.67
Diluted shares (millions)	25,930	25,930	25,929	25,929	25,930

5 older years available with the 10-year history. Essential plan, from €8.25/month →

Risk checks

Altman Z'' score

6.81 Safe zone

Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.

Piotroski F-score

8/9

Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.

Positive net income: passed
Positive operating cash flow: passed
Return on assets improved: passed
Cash flow exceeds net income: passed
Long-term debt ratio fell: failed
Current ratio improved: passed
No share dilution: passed
Gross margin improved: passed
Asset turnover improved: passed

Sources

20-FPeriod ending Dec 31, 2025Filed Apr 16, 2026Open the report ↗
20-FPeriod ending Dec 31, 2024Filed Apr 17, 2025Open the report ↗
20-FPeriod ending Dec 31, 2023Filed Apr 18, 2024Open the report ↗
20-FPeriod ending Dec 31, 2022Filed Apr 20, 2023Open the report ↗
20-FPeriod ending Dec 31, 2021Filed Apr 14, 2022Open the report ↗
20-FPeriod ending Dec 31, 2020Filed Apr 16, 2021Open the report ↗
20-FPeriod ending Dec 31, 2019Filed Apr 15, 2020Open the report ↗
20-FPeriod ending Dec 31, 2018Filed Apr 17, 2019Open the report ↗