Tower Semiconductor (Tower Semiconductor) Inventory Turnover : 0.91 (As of Dec. 2023)

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What is Tower Semiconductor Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Tower Semiconductor's Cost of Goods Sold for the three months ended in Dec. 2023 was $267 Mil. Tower Semiconductor's Average Total Inventories for the quarter that ended in Dec. 2023 was $293 Mil. Tower Semiconductor's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.91.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Tower Semiconductor's Days Inventory for the three months ended in Dec. 2023 was 100.18.

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. Tower Semiconductor's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.83.

Tower Semiconductor Inventory Turnover Historical Data

The historical data trend for Tower Semiconductor's Inventory Turnover 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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Tower Semiconductor Inventory Turnover Chart

Tower Semiconductor Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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5.53

5.28

5.44

4.51

3.66

Tower Semiconductor Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.97	0.79	0.79	0.85	0.91

Tower Semiconductor Inventory Turnover Calculation

Tower Semiconductor's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	1069.161	/ (	(302.108	+	282.688)	/	2 )
=	1069.161	/	292.398
=	3.66

Tower Semiconductor's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	267.294	/ (	(304.245	+	282.688)	/	2 )
=	267.294	/	293.4665
=	0.91

Tower Semiconductor (NAS:TSEM) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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

Tower Semiconductor's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	293.4665	/	267.294	*	365 / 4
	=	100.18

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.

Tower Semiconductor's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	293.4665	/	351.711
	=	0.83

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Tower Semiconductor Inventory Turnover Related Terms

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Tower Semiconductor (Tower Semiconductor) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Tower Semiconductor Ltd (NAS:TSEM) » Definitions » Inventory Turnover

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TSEM:Israel TOW:Germany

Address

20 Shaul Amor Avenue, P.O. Box 619, Ramat Gavriel Industrial Park, Migdal Haemek, ISR, 2310502

Website

https://www.towersemi.com

Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors. As a pure-play foundry, it focuses on producing integrated circuits (ICs), based on the design specifications of customers. The company's line of integrated circuits is incorporated into a variety of products and markets, including consumer electronics, personal computers, communications, automotive, and industrial and medical device products. Tower produces ICs alongside wholly-owned subsidiaries through fabrication facilities located in Japan. As a complement to its technology offerings, Tower offers services that enable a quick and accurate design cycle. To further assist customers with design and technical support, an integrated team helps clients through the manufacturing cycle.