Taiwan Semiconductor Financials

TSM Stock  USD 136.69  2.15  1.55%   
Based on the analysis of Taiwan Semiconductor's profitability, liquidity, and operating efficiency, Taiwan Semiconductor Manufacturing may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter. At this time, Taiwan Semiconductor's Retained Earnings are very stable compared to the past year. As of the 28th of March 2024, Accounts Payable is likely to grow to about 61.8 B, while Non Currrent Assets Other are likely to drop about 13.4 B. Key indicators impacting Taiwan Semiconductor's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.260.3879
Way Down
Very volatile
Return On Assets0.130.1516
Fairly Down
Very volatile
Return On Equity0.180.2424
Way Down
Pretty Stable
Debt Equity Ratio0.280.269
Sufficiently Up
Slightly volatile
Operating Income967.3 B921.3 B
Sufficiently Up
Slightly volatile
Current Ratio3.222.4016
Significantly Up
Pretty Stable
The financial analysis of Taiwan Semiconductor is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Taiwan Semiconductor includes many different criteria found on its balance sheet. For example, investors should never minimize Taiwan Semiconductor's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Taiwan Semiconductor's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Taiwan Semiconductor.

Cash And Equivalents

16.33 Billion

With this module, you can analyze Taiwan financials for your investing period. You should be able to track the changes in Taiwan Semiconductor individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Taiwan Semiconductor Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Taiwan Semiconductor's financial statements are interrelated, with each one affecting the others. For example, an increase in Taiwan Semiconductor's assets may result in an increase in income on the income statement.
Evaluating Taiwan Semiconductor's financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Taiwan Semiconductor's profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Taiwan Semiconductor's relative financial performance

Chance Of Distress

Less than 6

 
100  
 
Zero
Low
Taiwan Semiconductor Manufacturing has less than 6 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Taiwan Semiconductor stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Taiwan Semiconductor's odds of distress score SHOULD NOT be confused with the real chance of Taiwan Semiconductor Manufacturing filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Taiwan is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include Taiwan Semiconductor's liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in Taiwan Semiconductor's official financial statements usually reflect Taiwan Semiconductor's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Taiwan Semiconductor. For example, before you start analyzing numbers published by Taiwan accountants, it's critical to develop an understanding of what Taiwan Semiconductor's liquidity, profitability, and earnings quality are in the context of the Semiconductors & Semiconductor Equipment space in which it operates.
Please note, the presentation of Taiwan Semiconductor's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Taiwan Semiconductor's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Taiwan Semiconductor's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Taiwan Semiconductor Manufacturing. Please utilize our Beneish M Score to check the likelihood of Taiwan Semiconductor's management manipulating its earnings.

Taiwan Semiconductor Company Summary

Taiwan Semiconductor competes with Diodes Incorporated, Daqo New, MagnaChip Semiconductor, Nano Labs, and ON Semiconductor. Taiwan Semiconductor Manufacturing Company Limited manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan. Taiwan Semiconductor operates under Semiconductors classification in the United States and is traded on New York Stock Exchange. It employs 65152 people.
Specialization
Information Technology, Semiconductors & Semiconductor Equipment
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
ISINUS8740391003
CUSIP874039100
LocationTaiwan
Business AddressHsinchu Science Park,
SectorSemiconductors & Semiconductor Equipment
IndustryInformation Technology
BenchmarkNYSE Composite
Websitewww.tsmc.com
Phone886 3 563 6688
CurrencyUSD - US Dollar
You should never invest in Taiwan Semiconductor without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Taiwan Stock, because this is throwing your money away. Analyzing the key information contained in Taiwan Semiconductor's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Taiwan Semiconductor Key Financial Ratios

Generally speaking, Taiwan Semiconductor's financial ratios allow both analysts and investors to convert raw data from Taiwan Semiconductor's financial statements into concise, actionable information that can be used to evaluate the performance of Taiwan Semiconductor over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Taiwan Semiconductor reports annually and quarterly.

Taiwan Semiconductor Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets2.3T2.8T3.7T5.0T5.5T5.8T
Other Current Liab32.8B2.7B5.3B584.7B789.8B829.3B
Net Debt(296.7B)(295.0B)(315.9B)(454.6B)(506.4B)(481.0B)
Retained Earnings1.3T1.6T1.9T2.6T2.9T3.0T
Accounts Payable179.6B196.8B193.0B268.4B57.3B61.8B
Cash455.4B660.2B1.1T1.3T1.5T1.5T
Net Receivables139.8B146.1B198.4B231.4B202.0B212.1B
Inventory83.0B137.4B193.1B221.1B251.0B263.5B
Other Current Assets5.3B6.6B10.5B12.9B53.3B55.9B
Total Liab642.7B910.1B1.6T2.0T2.0T2.2T
Total Current Assets822.6B1.1T1.6T2.1T2.2T2.3T
Short Term Debt118.5B88.6B114.9B19.3B12.1B11.5B
Other Liab11.8B16.3B205.2B191.2B219.9B230.9B
Other Assets21.8B31.7B3.7T5.0T1.00.95
Long Term Debt25.1B254.1B610.1B839.1B965.0B1.0T
Good Will5.7B5.4B5.4B5.8B5.8B4.5B
Intangible Assets15.0B20.3B21.4B20.2B17.0B11.0B
Net Tangible Assets1.6T1.8T2.2T2.9T3.4T3.5T
Short Long Term Debt150.3B88.6B119.5B19.3B17.4B16.5B
Long Term Debt Total40.1B254.1B610.1B868.9B999.2B1.0T
Capital Surpluse56.3B56.3B64.8B69.3B79.7B64.9B

Taiwan Semiconductor Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Taiwan Semiconductor's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense3.3B2.1B5.4B11.7B18.3B19.2B
Total Revenue1.1T1.3T1.6T2.3T2.2T2.3T
Gross Profit492.7B711.1B819.5B1.3T1.2T1.2T
Operating Income372.7B566.8B650.0B1.1T921.3B967.3B
Ebit372.7B566.8B650.0B1.1T921.3B967.3B
Research Development91.4B109.5B124.7B163.3B182.4B191.5B
Ebitda679.9B912.2B1.1T1.6T1.5T1.5T
Cost Of Revenue577.3B628.1B767.9B915.5B986.6B1.0T
Income Before Tax389.8B584.8B663.1B1.1T974.5B1.0T
Net Income353.9B510.7B592.4B992.9B838.5B880.4B
Income Tax Expense44.5B66.6B66.1B127.3B141.4B148.5B
Minority Interest685.3M964.7M(533M)(370.3M)(425.8M)(404.5M)
Tax Provision44.5B66.6B66.1B127.3B146.4B153.7B
Interest Income16.5B10.5B5.9B22.4B20.2B11.8B
Net Interest Income12.9B6.9B294M10.7B12.3B8.1B

Taiwan Semiconductor Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Taiwan Semiconductor. It measures of how well Taiwan is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Taiwan Semiconductor brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Taiwan had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Taiwan Semiconductor has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change To Inventory20.2B(54.4B)(55.7B)(28.0B)(29.8B)(28.4B)
Change In Cash(122.4B)204.8B404.8B277.8B122.6B128.7B
Free Cash Flow145.4B301.2B262.7B521.0B292.2B306.8B
Depreciation286.9B331.7B422.4B437.3B526.9B553.2B
Other Non Cash Items(12.9B)(6.9B)(708.8M)(93.7B)(122.6B)(116.4B)
Capital Expenditures469.8B521.5B849.4B1.1T949.8B997.3B
Net Income389.8B584.8B663.1B1.1T838.5B880.4B
End Period Cash Flow455.4B660.2B1.1T1.3T1.5T1.5T
Change To Netincome(27.8B)1.4B(22.5B)34.3B30.9B32.4B
Investments(458.8B)(505.8B)4.3B(1.2T)(1.1T)(1.0T)
Net Borrowings(6.0B)172.7B397.7B82.0B94.3B78.1B

Taiwan Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Taiwan Semiconductor's current stock value. Our valuation model uses many indicators to compare Taiwan Semiconductor value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Taiwan Semiconductor competition to find correlations between indicators driving Taiwan Semiconductor's intrinsic value. More Info.
Taiwan Semiconductor Manufacturing is rated third in price to book category among related companies. It is currently regarded as top stock in price to earnings to growth category among related companies producing about  0.24  of Price To Earnings To Growth per Price To Book. The ratio of Price To Book to Price To Earnings To Growth for Taiwan Semiconductor Manufacturing is roughly  4.23 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Taiwan Semiconductor by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Taiwan Semiconductor's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Taiwan Semiconductor's earnings, one of the primary drivers of an investment's value.

Taiwan Semiconductor Systematic Risk

Taiwan Semiconductor's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Taiwan Semiconductor volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was three with a total number of output elements of fifty-eight. The Beta measures systematic risk based on how returns on Taiwan Semiconductor correlated with the market. If Beta is less than 0 Taiwan Semiconductor generally moves in the opposite direction as compared to the market. If Taiwan Semiconductor Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Taiwan Semiconductor is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Taiwan Semiconductor is generally in the same direction as the market. If Beta > 1 Taiwan Semiconductor moves generally in the same direction as, but more than the movement of the benchmark.

About Taiwan Semiconductor Financials

What exactly are Taiwan Semiconductor Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Taiwan Semiconductor's income statement, its balance sheet, and the statement of cash flows. Potential Taiwan Semiconductor investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Taiwan Semiconductor investors may use each financial statement separately, they are all related. The changes in Taiwan Semiconductor's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Taiwan Semiconductor's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Taiwan Semiconductor Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Taiwan Semiconductor is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Taiwan has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Taiwan Semiconductor's financials are consistent with your investment objective using the following steps:
  • Review Taiwan Semiconductor's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Taiwan Semiconductor's liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Taiwan Semiconductor's financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Taiwan Semiconductor's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Taiwan Semiconductor Thematic Clasifications

Taiwan Semiconductor Manufacturing is part of several thematic ideas from Semiconductor to Cash Cows. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in Taiwan Semiconductor Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Taiwan Semiconductor's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Taiwan Semiconductor growth as a starting point in their analysis.

Price Earnings To Growth Ratio

(1.33)

At this time, Taiwan Semiconductor's Price Earnings To Growth Ratio is very stable compared to the past year.

Taiwan Semiconductor March 28, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Taiwan Semiconductor help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Taiwan Semiconductor Manufacturing. We use our internally-developed statistical techniques to arrive at the intrinsic value of Taiwan Semiconductor Manufacturing based on widely used predictive technical indicators. In general, we focus on analyzing Taiwan Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Taiwan Semiconductor's daily price indicators and compare them against related drivers.
When determining whether Taiwan Semiconductor is a strong investment it is important to analyze Taiwan Semiconductor's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Taiwan Semiconductor's future performance. For an informed investment choice regarding Taiwan Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Taiwan Semiconductor Manufacturing. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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When running Taiwan Semiconductor's price analysis, check to measure Taiwan Semiconductor's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Taiwan Semiconductor is operating at the current time. Most of Taiwan Semiconductor's value examination focuses on studying past and present price action to predict the probability of Taiwan Semiconductor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Taiwan Semiconductor's price. Additionally, you may evaluate how the addition of Taiwan Semiconductor to your portfolios can decrease your overall portfolio volatility.
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Is Taiwan Semiconductor's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Taiwan Semiconductor. If investors know Taiwan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Taiwan Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.19)
Dividend Share
13
Earnings Share
5.05
Revenue Per Share
52.1069
Return On Assets
0.1097
The market value of Taiwan Semiconductor is measured differently than its book value, which is the value of Taiwan that is recorded on the company's balance sheet. Investors also form their own opinion of Taiwan Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is Taiwan Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Taiwan Semiconductor's market value can be influenced by many factors that don't directly affect Taiwan Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Taiwan Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Taiwan Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taiwan Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.