Taiwan Semiconductor Manufacturing Co (Taiwan Semiconductor Manufacturing Co) Inventory Turnover : 1.09 (As of Mar. 2024)

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What is Taiwan Semiconductor Manufacturing Co 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. Taiwan Semiconductor Manufacturing Co's Cost of Goods Sold for the three months ended in Mar. 2024 was $8,776 Mil. 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 Inventory Turnover for the quarter that ended in Mar. 2024 was 1.09.

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-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 quarter that ended in Mar. 2024 was 0.43.

Taiwan Semiconductor Manufacturing Co Inventory Turnover Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co'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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Taiwan Semiconductor Manufacturing Co Inventory Turnover Chart

Taiwan Semiconductor Manufacturing Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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6.26

5.85

4.68

4.21

4.14

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 Turnover	Get a 7-Day Free Trial															1.02	0.98	0.99	1.16	1.09

Taiwan Semiconductor Manufacturing Co Inventory Turnover Calculation

Taiwan Semiconductor Manufacturing Co'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 )
=	31570.491	/ (	(7214.74	+	8031.522)	/	2 )
=	31570.491	/	7623.131
=	4.14

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

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	8776.205	/ (	(8031.522	+	0)	/	1 )
=	8776.205	/	8031.522
=	1.09

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) 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.

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-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 quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	8031.522	/	18699.878
	=	0.43

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.

Taiwan Semiconductor Manufacturing Co Inventory Turnover 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 Turnover

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.