MEX:TSMN's Current Ratio is ranked better than 50.29% of 1028
companies
in the Semiconductors industry
Industry Median: 2.48
vs MEX:TSMN: 2.49
Taiwan Semiconductor Manufacturing Co (MEX:TSMN) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Taiwan Semiconductor Manufacturing Co Current Ratio Related Terms
Taiwan Semiconductor Manufacturing Co Current Ratio Historical 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.
Taiwan Semiconductor Manufacturing Co Current Ratio Chart
MEX:TSMN vs NVDA, AVGO, MU: Current Ratio Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Current Ratio falls into.
* 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 (MEX:TSMN) has a Current Ratio of 2.49 as of Mar. 2026. This is near median its historical median of 2.31. Over the past decade, Taiwan Semiconductor Manufacturing Co's Current Ratio has ranged from 1.36 to 2.76. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #511 out of 1028 companies in the Semiconductors industry, placing it in the top 49.7%.
Is Taiwan Semiconductor Manufacturing Co's Current Ratio too high?
Taiwan Semiconductor Manufacturing Co's current Current Ratio of 2.49 is near median its 10-year median of 2.31. Over the past 10 years, this metric has ranged from a low of 1.36 to a high of 2.76. The Semiconductors industry median Current Ratio is 2.48. Taiwan Semiconductor Manufacturing Co's value of 2.49 is 0.4% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #511 out of 1028 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's Current Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #511 out of 1028 companies for Current Ratio. This puts Taiwan Semiconductor Manufacturing Co in the upper half of its industry. The industry median Current Ratio is 2.48. Taiwan Semiconductor Manufacturing Co's value of 2.49 is 0.4% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own Current Ratio has ranged from 1.36 to 2.76 over the past decade. While the company's 10-year median is 2.31 vs. the industry median of 2.48, Taiwan Semiconductor Manufacturing Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Semiconductors company?
The median Current Ratio among Semiconductors companies is 2.48, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current Current Ratio of 2.49 is 0.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median Current Ratio is 2.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current Current Ratio is 2.49, which is near median its own 10-year median of 2.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Semiconductor Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co (MEX:TSMN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN5,298.30, compared to a current price of MXN7,563.78 — trading 42.8% above its estimated fair value. The current Current Ratio is 2.49, which is near median its 10-year median of 2.31 and 0.4% above the Semiconductors industry median of 2.48. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (MEX:TSMN), the current Current Ratio is 2.49 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Taiwan Semiconductor Manufacturing Co (MEX:TSMN) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued.
The current stock price of MXN7,563.78 is trading 42.8% above its estimated GF Value™ of MXN5,298.30.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for MEX:TSMN:
Current Ratio: 2.49 (near median its 10-year median of 2.31)
GF Value™: MXN5,298.30 vs. price of MXN7,563.78 (42.8% above fair value)
Industry Position: 0.4% above the Semiconductors median (#511 of 1028)
No single metric tells the full story. See the MEX:TSMN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Semiconductor Manufacturing Co Business Description
Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with about 70% market share in 2025. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public in Taiwan in 1994 and as an ADR in the US 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 base of customers, including Apple, AMD, and Nvidia, that look to apply its cutting-edge process technologies to their semiconductor designs. TSMC employs more than 83,000 people.
82GF Score
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