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Taiwan Semiconductor Manufacturing Co Cash Ratio

: 1.58 (As of Mar. 2022)
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The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Taiwan Semiconductor Manufacturing Co's Cash Ratio for the quarter that ended in Mar. 2022 was 1.58.

Taiwan Semiconductor Manufacturing Co has a Cash Ratio of 1.58. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.

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

TSM' s Cash Ratio Range Over the Past 10 Years
Min: 0.75   Med: 1.7   Max: 5.12
Current: 1.58

During the past 13 years, Taiwan Semiconductor Manufacturing Co's highest Cash Ratio was 5.12. The lowest was 0.75. And the median was 1.70.

TSM's Cash Ratio is ranked better than
65.93% of 910 companies
in the Semiconductors industry
Industry Median: 0.97 vs TSM: 1.58

Taiwan Semiconductor Manufacturing Co Cash Ratio Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's Cash Ratio 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
Cash Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.70 2.00 0.99 1.27 1.59

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
Cash Ratio 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 1.23 1.34 1.51 1.59 1.58

Competitive Comparison

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

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

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



Taiwan Semiconductor Manufacturing Co Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

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

Cash Ratio (A: Dec. 2021 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=43423.286639446/27329.90006523
=1.59

Taiwan Semiconductor Manufacturing Co's Cash Ratio for the quarter that ended in Mar. 2022 is calculated as:

Cash Ratio (Q: Mar. 2022 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=45627.686845132/28942.317340396
=1.58

* 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.


Taiwan Semiconductor Manufacturing Co  (NYSE:TSM) Cash Ratio Explanation

The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.

The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.

In general, the higher the cash ratio, the better the company's liquidity position.


Taiwan Semiconductor Manufacturing Co Cash Ratio 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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