Taiwan Semiconductor Manufacturing Co (Taiwan Semiconductor Manufacturing Co) Days Inventory

: 78.68 (As of Dec. 2023)

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Days Inventory is also known as Days Sales of Inventory (DSI). Taiwan Semiconductor Manufacturing Co's Average Total Inventories for the three months ended in Dec. 2023 was $8,105 Mil. Taiwan Semiconductor Manufacturing Co's Cost of Goods Sold for the three months ended in Dec. 2023 was $9,400 Mil. Hence, Taiwan Semiconductor Manufacturing Co's Days Inventory for the three months ended in Dec. 2023 was 78.68.

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

TSM' s Days Inventory Range Over the Past 10 Years
Min: 44.65 Med: 59.73 Max: 87.65
Current: 87.65

During the past 13 years, Taiwan Semiconductor Manufacturing Co's highest Days Inventory was 87.65. The lowest was 44.65. And the median was 59.73.

TSM's Days Inventory is ranked better than
67.84% of 939 companies
in the Semiconductors industry
Industry Median: 131.48 vs TSM: 87.65

Taiwan Semiconductor Manufacturing Co's Days Inventory declined from Dec. 2022 (84.00) to Dec. 2023 (78.68).

Inventory Turnover measures how fast the company turns over its inventory within a year. Taiwan Semiconductor Manufacturing Co's Inventory Turnover for the three months ended in Dec. 2023 was 1.16.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Taiwan Semiconductor Manufacturing Co's Inventory-to-Revenue for the three months ended in Dec. 2023 was 0.40.

Taiwan Semiconductor Manufacturing Co Days Inventory Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's Days Inventory 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

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Days Inventory

58.31

62.38

78.01

86.60

88.13

Taiwan Semiconductor Manufacturing Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory																84.00	89.63	93.58	92.23	78.68

Competitive Comparison

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

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

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

Taiwan Semiconductor Manufacturing Co Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Taiwan Semiconductor Manufacturing Co's Days Inventory for the fiscal year that ended in Dec. 2023 is calculated as

	Days Inventory (A: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2023 )	*	Days in Period
=	( (7214.74	+	8031.521)	/	2 )	/	31570.492	*	365
=	7623.1305					/	31570.492	*	365
=	88.13

Taiwan Semiconductor Manufacturing Co's Days Inventory for the quarter that ended in Dec. 2023 is calculated as:

	Days Inventory (Q: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
=	( (8179.196	+	8031.521)	/	2 )	/	9399.935	*	365 / 4
=	8105.3585					/	9399.935	*	365 / 4
=	78.68

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Taiwan Semiconductor Manufacturing Co's Inventory Turnover for the three months ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	9399.935	/	8105.3585
	=	1.16

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Taiwan Semiconductor Manufacturing Co's Inventory to Revenue for the three months ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	8105.3585	/	20015.999
	=	0.40

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Taiwan Semiconductor Manufacturing Co Days Inventory Related Terms

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Taiwan Semiconductor Manufacturing Co (Taiwan Semiconductor Manufacturing Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

2330:Taiwan TSM N:Mexico 0LCV:UK TSFA:Germany TSFA:Germany TSMC34:Brazil TSFA:Austria TSM:Argentina

Address

No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096

Website

https://www.tsmc.com

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with almost 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 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. TSMC employs more than 73,000 people.