Taiwan Semiconductor Manufacturing Co (FRA:TSFA) Interest Coverage: N/A (As of Jun. 2026)

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FRA:TSFA Taiwan Semiconductor Manufacturing Co Ltd FRA:TSFA
91 GF Score
Price €350.00
GF Value €261.29
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Taiwan Semiconductor Manufacturing Co Interest Coverage?

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 Jun. 2026 was €21,044 Mil. Taiwan Semiconductor Manufacturing Co's Interest Expense for the three months ended in Jun. 2026 was €0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Taiwan Semiconductor Manufacturing Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

FRA:TSFA' s Interest Coverage Range Over the Past 10 Years
Min: 76.79   Med: 118.08   Max: 285.71
Current: 285.71


FRA:TSFA's Interest Coverage is ranked better than
84.62% of 637 companies
in the Semiconductors industry
Industry Median: 20.5 vs FRA:TSFA: 285.71

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  (FRA:TSFA) 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


Taiwan Semiconductor Manufacturing Co Interest Coverage Historical Data

* Premium members only.

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.

Taiwan Semiconductor Manufacturing Co Interest Coverage Chart

Taiwan Semiconductor Manufacturing Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 120.05 95.42 76.79 125.96 156.51

Taiwan Semiconductor Manufacturing Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage Get a 7-Day Free Trial 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 125.55 169.23 185.61 242.54 N/A

FRA:TSFA vs NVDA, AVGO, MU: Interest Coverage 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 vs Semiconductors Industry

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.


FRA:TSFA
91GF Score
Taiwan Semiconductor Manufacturing Co Ltd FRA:TSFA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

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. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Taiwan Semiconductor Manufacturing Co's Interest Expense was €-337 Mil. Its Operating Income was €52,737 Mil. And its Long-Term Debt & Capital Lease Obligation was €25,268 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*52736.981/-336.955
=156.51

Taiwan Semiconductor Manufacturing Co's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Taiwan Semiconductor Manufacturing Co's Interest Expense was €0 Mil. Its Operating Income was €21,044 Mil. And its Long-Term Debt & Capital Lease Obligation was €22,374 Mil.

GuruFocus does not calculate Taiwan Semiconductor Manufacturing Co's interest coverage with the available 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.

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

Is Taiwan Semiconductor Manufacturing Co (FRA:TSFA) Overvalued in 2026?

Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued. The current stock price of €350.00 is trading 34% above its estimated GF Value™ of €261.29. GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.

Key valuation signals for FRA:TSFA:

  • Interest Coverage: N/A
  • GF Value™: €261.29 vs. price of €350.00 (34% above fair value)
  • GF Score™: 91/100 with 2 warning signs

No single metric tells the full story. See the FRA:TSFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Taiwan Semiconductor Manufacturing Co Business Description

Address No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096
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.
91GF Score

Get the complete analysis for FRA:TSFA

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€350.00
Price
€261.29
GF Value