Taiwan Semiconductor Manufacturing Co (Taiwan Semiconductor Manufacturing Co) Interest Coverage

: 89.15 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Taiwan Semiconductor Manufacturing Co's Operating Income for the three months ended in Dec. 2023 was $8,326 Mil. Taiwan Semiconductor Manufacturing Co's Interest Expense for the three months ended in Dec. 2023 was $-93 Mil. Taiwan Semiconductor Manufacturing Co's interest coverage for the quarter that ended in Dec. 2023 was 89.15. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Taiwan Semiconductor Manufacturing Co's Interest Coverage or its related term are showing as below:

TSM' s Interest Coverage Range Over the Past 10 Years
Min: 76.79 Med: 114.48 Max: 272.3
Current: 76.79

TSM's Interest Coverage is ranked better than
71.08% of 619 companies
in the Semiconductors industry
Industry Median: 19.52 vs TSM: 76.79

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Taiwan Semiconductor Manufacturing Co Interest Coverage Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Taiwan Semiconductor Manufacturing Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

114.65

272.30

120.05

95.43

76.79

Taiwan Semiconductor Manufacturing Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																97.46	78.02	67.20	73.29	89.15

Competitive Comparison

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Taiwan Semiconductor Manufacturing Co Interest Coverage Distribution

For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Interest Coverage falls into.

Taiwan Semiconductor Manufacturing Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Taiwan Semiconductor Manufacturing Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Taiwan Semiconductor Manufacturing Co's Interest Expense was $-384 Mil. Its Operating Income was $29,485 Mil. And its Long-Term Debt & Capital Lease Obligation was $30,301 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	29485.484	/	-383.961
	=	76.79

Taiwan Semiconductor Manufacturing Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Taiwan Semiconductor Manufacturing Co's Interest Expense was $-93 Mil. Its Operating Income was $8,326 Mil. And its Long-Term Debt & Capital Lease Obligation was $30,301 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	8326.144	/	-93.391
	=	89.15

The higher the ratio, the stronger the company's Financial Strength is.

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Taiwan Semiconductor Manufacturing Co Interest Coverage Related Terms

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Taiwan Semiconductor Manufacturing Co (Taiwan Semiconductor Manufacturing Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

2330:Taiwan TSM N:Mexico 0LCV:UK TSFA:Germany TSFA:Germany TSMC34:Brazil TSFA:Austria TSM:Argentina

Address

No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096

Website

https://www.tsmc.com

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with almost 60% market share. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.