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TSM (Taiwan Semiconductor Manufacturing Co) 10-Year ROIIC % : 25.02% (As of Dec. 2023)


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What is Taiwan Semiconductor Manufacturing Co 10-Year ROIIC %?

10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year. Taiwan Semiconductor Manufacturing Co's 10-Year ROIIC % for the quarter that ended in Dec. 2023 was 25.02%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Taiwan Semiconductor Manufacturing Co's 10-Year ROIIC % or its related term are showing as below:

TSM's 10-Year ROIIC % is ranked better than
81.62% of 914 companies
in the Semiconductors industry
Industry Median: 5.355 vs TSM: 25.02

Taiwan Semiconductor Manufacturing Co 10-Year ROIIC % Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's 10-Year ROIIC % 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 10-Year ROIIC % Chart

Taiwan Semiconductor Manufacturing Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
10-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.79 26.66 26.87 36.52 25.02

Taiwan Semiconductor Manufacturing Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
10-Year ROIIC % 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 - 25.02 - - -

Competitive Comparison of Taiwan Semiconductor Manufacturing Co's 10-Year ROIIC %

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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's 10-Year ROIIC % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's 10-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's 10-Year ROIIC % falls into.



Taiwan Semiconductor Manufacturing Co 10-Year ROIIC % Calculation

Taiwan Semiconductor Manufacturing Co's 10-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

10-Year ROIIC %=10-Year Incremental Net Operating Profit After Taxes (NOPAT)**/10-Year Incremental Invested Capital**
=( 25621.893198 (Dec. 2023) - 6015.1504433 (Dec. 2013) )/( 109614.882 (Dec. 2023) - 31636.303 (Dec. 2013) )
=19606.7427547/77978.579
=25.14%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Taiwan Semiconductor Manufacturing Co  (NYSE:TSM) 10-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Taiwan Semiconductor Manufacturing Co 10-Year ROIIC % Related Terms

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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 over 60% market share. 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 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 customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.