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GuruFocus has detected 3 Warning Signs with Taiwan Semiconductor Manufacturing Co Ltd $TSM.
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Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)
Net Margin %
37.46% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. Taiwan Semiconductor Manufacturing Co Ltd's net income for the three months ended in Mar. 2017 was $2,859 Mil. Taiwan Semiconductor Manufacturing Co Ltd's revenue for the three months ended in Mar. 2017 was $7,632 Mil. Therefore, Taiwan Semiconductor Manufacturing Co Ltd's net margin for the quarter that ended in Mar. 2017 was 37.46%.

TSM' s Net Margin % Range Over the Past 10 Years
Min: 30   Max: 38.52
Current: 36.24

30
38.52
TSM's Net Margin % is ranked higher than
98% of the 843 Companies
in the Global Semiconductors industry.

( Industry Median: 3.63 vs. TSM: 36.24 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Taiwan Semiconductor Manufacturing Co Ltd's Net Margin for the fiscal year that ended in Dec. 2016 is calculated as

Net Margin=Net Income (A: Dec. 2016 )/Revenue (A: Dec. 2016 )
=10365.891158/29621.6996609
=34.99 %

Taiwan Semiconductor Manufacturing Co Ltd's Net Margin for the quarter that ended in Mar. 2017 is calculated as

Net Margin=Net Income (Q: Mar. 2017 )/Revenue (Q: Mar. 2017 )
=2859.13914783/7632.24443451
=37.46 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Taiwan Semiconductor Manufacturing Co Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin 33.8430.0030.1738.5231.4231.4730.8233.3435.9034.99

Taiwan Semiconductor Manufacturing Co Ltd Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 31.6435.5838.6635.4533.9631.8432.6937.1637.2537.46
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