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Taiwan Semiconductor Manufacturing Co ROA %

: 20.77% (As of Mar. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Taiwan Semiconductor Manufacturing Co's annualized Net Income for the quarter that ended in Mar. 2022 was $28,523 Mil. Taiwan Semiconductor Manufacturing Co's average Total Assets over the quarter that ended in Mar. 2022 was $137,343 Mil. Therefore, Taiwan Semiconductor Manufacturing Co's annualized ROA % for the quarter that ended in Mar. 2022 was 20.77%.

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

TSM' s ROA % Range Over the Past 10 Years
Min: 16.26   Med: 18.3   Max: 20.33
Current: 19.41

During the past 13 years, Taiwan Semiconductor Manufacturing Co's highest ROA % was 20.33%. The lowest was 16.26%. And the median was 18.30%.

TSM's ROA % is ranked better than
87.98% of 915 companies
in the Semiconductors industry
Industry Median: 6.19 vs TSM: 19.41

Taiwan Semiconductor Manufacturing Co ROA % Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's ROA % 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.

* Premium members only.

Taiwan Semiconductor Manufacturing Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.36 17.55 16.39 20.97 18.39

Taiwan Semiconductor Manufacturing Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.65 18.42 19.48 18.83 20.77

Competitive Comparison

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution

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

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



Taiwan Semiconductor Manufacturing Co ROA % Calculation

Taiwan Semiconductor Manufacturing Co's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=21347.739124481/( (97883.568711019+134254.31651176)/ 2 )
=21347.739124481/116068.94261139
=18.39 %

Taiwan Semiconductor Manufacturing Co's annualized ROA % for the quarter that ended in Mar. 2022 is calculated as:

ROA %=Net Income (Q: Mar. 2022 )/( (Total Assets (Q: Dec. 2021 )+Total Assets (Q: Mar. 2022 ))/ count )
=28522.505126392/( (134254.31651176+140432.43421863)/ 2 )
=28522.505126392/137343.37536519
=20.77 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2022) net income data. ROA % is displayed in the 30-year financial page.


Taiwan Semiconductor Manufacturing Co  (NYSE:TSM) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Mar. 2022 )
=Net Income/Total Assets
=28522.505126392/137343.37536519
=(Net Income / Revenue)*(Revenue / Total Assets)
=(28522.505126392 / 69089.471533134)*(69089.471533134 / 137343.37536519)
=Net Margin %*Asset Turnover
=41.28 %*0.503
=20.77 %

Note: The Net Income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Taiwan Semiconductor Manufacturing Co ROA % Related Terms

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Taiwan Semiconductor Manufacturing Co Business Description

Taiwan Semiconductor Manufacturing Co logo
Address
No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096
Taiwan Semiconductor Manufacturing Company, or TSMC, is the world's largest dedicated chip foundry, with over 58% market share in 2020 per Gartner. 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.

Taiwan Semiconductor Manufacturing Co Headlines

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