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Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)
Days Inventory
40.16 (As of Sep. 2016)

Taiwan Semiconductor Manufacturing Co Ltd's average inventory for the three months ended in Sep. 2016 was $1,796 Mil. Taiwan Semiconductor Manufacturing Co Ltd's cost of goods sold for the three months ended in Sep. 2016 was $4,081 Mil. Hence, Taiwan Semiconductor Manufacturing Co Ltd's days inventory for the three months ended in Sep. 2016 was 40.16.

TSM' s Days Inventory Range Over the Past 10 Years
Min: 36.94   Max: 56.21
Current: 49.02

36.94
56.21

During the past 13 years, Taiwan Semiconductor Manufacturing Co Ltd's highest Days Inventory was 56.21. The lowest was 36.94. And the median was 43.15.

TSM's Days Inventory is ranked higher than
73% of the 826 Companies
in the Global Semiconductors industry.

( Industry Median: 78.21 vs. TSM: 49.02 )

Taiwan Semiconductor Manufacturing Co Ltd's days inventory declined from Sep. 2015 (55.96) to Sep. 2016 (40.16).

Inventory can be measured by Days Sales of Inventory (DSI). Taiwan Semiconductor Manufacturing Co Ltd's days sales of inventory (DSI) for the three months ended in Sep. 2016 was 19.80.

Inventory turnover measures how fast the company turns over its inventory within a year. Taiwan Semiconductor Manufacturing Co Ltd's inventory turnover for the three months ended in Sep. 2016 was 2.27.

Inventory to revenue ratio 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 Ltd's inventory to revenue ratio for the three months ended in Sep. 2016 was 0.22.


Definition

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

Taiwan Semiconductor Manufacturing Co Ltd's Days Inventory for the fiscal year that ended in Dec. 2015 is calculated as

Days Inventory (A: Dec. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2014 ) + Inventory (A: Dec. 2015 )) / 2 ) / COGS (A: Dec. 2015 )*Days in Period
=( (2115.91641974 + 2044.86878822) / 2 ) / 13208.6305485*365
=2080.39260398 / 13208.6305485*365
=57.49

Taiwan Semiconductor Manufacturing Co Ltd's Days Inventory for the quarter that ended in Sep. 2016 is calculated as:

Days Inventory (Q: Sep. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jun. 2016 ) + Inventory (Q: Sep. 2016 )) / 2 ) / COGS (Q: Sep. 2016 )*Days in Period
=( (1879.43696594 + 1712.92603684) / 2 ) / 4080.81119143*365 / 4
=1796.18150139 / 4080.81119143*365 / 4
=40.16

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


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Taiwan Semiconductor Manufacturing Co Ltd's Days Sales of Inventory for the three months ended in Sep. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1796.18150139/8278.73684679*365 / 4
=19.80

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

Taiwan Semiconductor Manufacturing Co Ltd's Inventory Turnover for the three months ended in Sep. 2016 is calculated as

Inventory Turnover=Cost of Goods Sold / Average Inventory
=4080.81119143 / 1796.18150139
=2.27

3. 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 Ltd's Inventory to Revenue for the three months ended in Sep. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=1796.18150139 / 8278.73684679
=0.22

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


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.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 42.2744.4037.4738.8041.0541.9642.8744.0650.1857.49

Taiwan Semiconductor Manufacturing Co Ltd Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DaysInventory 46.6351.3854.7353.1356.0055.9657.7350.3949.8640.16
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