Taiwan Semiconductor Manufacturing Co (Taiwan Semiconductor Manufacturing Co) Inventory-to-Revenue : 0.43 (As of Mar. 2024)

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What is Taiwan Semiconductor Manufacturing Co Inventory-to-Revenue?

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 Average Total Inventories for the quarter that ended in Mar. 2024 was $8,032 Mil. Taiwan Semiconductor Manufacturing Co's Revenue for the three months ended in Mar. 2024 was $18,700 Mil. Taiwan Semiconductor Manufacturing Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.43.

Taiwan Semiconductor Manufacturing Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 increased from Dec. 2023 (0.41) to Dec. 2023 (0.43)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

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 three months ended in Mar. 2024 was 83.51.

Inventory Turnover measures how fast the company turns over its inventory within a year. Taiwan Semiconductor Manufacturing Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.09.

Taiwan Semiconductor Manufacturing Co Inventory-to-Revenue Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's Inventory-to-Revenue 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.

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Taiwan Semiconductor Manufacturing Co Inventory-to-Revenue Chart

Taiwan Semiconductor Manufacturing Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

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0.09

0.08

0.10

0.11

Taiwan Semiconductor Manufacturing Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory-to-Revenue	Get a 7-Day Free Trial															0.43	0.47	0.46	0.41	0.43

Competitive Comparison of Taiwan Semiconductor Manufacturing Co's Inventory-to-Revenue

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue Distribution in the Semiconductors Industry

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

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

Taiwan Semiconductor Manufacturing Co Inventory-to-Revenue Calculation

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

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (7214.74	+	8031.522)	/	2 )	/	69172.225
=	7623.131					/	69172.225
=	0.11

Taiwan Semiconductor Manufacturing Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 is calculated as

	Inventory-to-Revenue (Q: Mar. 2024 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )	/	Revenue (Q: Mar. 2024 )
=	( (8031.522	+	0)	/	1 )	/	18699.878
=	8031.522					/	18699.878
=	0.43

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. 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 three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	8031.522	/	8776.205	*	365 / 4
	=	83.51

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

Taiwan Semiconductor Manufacturing Co's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Mar. 2024 )	/	Average Total Inventories (Q: Mar. 2024 )
	=	8776.205	/	8031.522
	=	1.09

Taiwan Semiconductor Manufacturing Co Inventory-to-Revenue 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 » Inventory-to-Revenue

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.