Tower Semiconductor (Tower Semiconductor) Days Inventory

: 100.18 (As of Dec. 2023)

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Days Inventory is also known as Days Sales of Inventory (DSI). Tower Semiconductor's Average Total Inventories for the three months ended in Dec. 2023 was $293 Mil. Tower Semiconductor's Cost of Goods Sold for the three months ended in Dec. 2023 was $267 Mil. Hence, Tower Semiconductor's Days Inventory for the three months ended in Dec. 2023 was 100.18.

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

TSEM' s Days Inventory Range Over the Past 10 Years
Min: 36.46 Med: 61.33 Max: 107.78
Current: 107.78

During the past 13 years, Tower Semiconductor's highest Days Inventory was 107.78. The lowest was 36.46. And the median was 61.33.

TSEM's Days Inventory is ranked better than
59.72% of 941 companies
in the Semiconductors industry
Industry Median: 132.01 vs TSEM: 107.78

Tower Semiconductor's Days Inventory increased from Dec. 2022 (93.63) to Dec. 2023 (100.18). It might indicate that Tower Semiconductor's sales slowed down.

Warning Sign:

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Inventory Turnover measures how fast the company turns over its inventory within a year. Tower Semiconductor's Inventory Turnover for the three months ended in Dec. 2023 was 0.91.

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 three months ended in Dec. 2023 was 0.83.

Tower Semiconductor Days Inventory Historical Data

The historical data trend for Tower Semiconductor'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.

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Tower Semiconductor Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Days Inventory

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65.97

69.19

67.12

80.85

99.82

Tower Semiconductor Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory	Get a 7-Day Free Trial															93.63	116.01	116.23	106.80	100.18

Competitive Comparison

For the Semiconductors subindustry, Tower Semiconductor'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.

Tower Semiconductor Days Inventory Distribution

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

* The bar in red indicates where Tower Semiconductor's Days Inventory falls into.

Tower Semiconductor Days Inventory Calculation

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 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
=	( (302.108	+	282.688)	/	2 )	/	1069.161	*	365
=	292.398					/	1069.161	*	365
=	99.82

Tower Semiconductor'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
=	( (304.245	+	282.688)	/	2 )	/	267.294	*	365 / 4
=	293.4665					/	267.294	*	365 / 4
=	100.18

Tower Semiconductor (NAS:TSEM) 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.

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

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	267.294	/	293.4665
	=	0.91

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 three months ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	293.4665	/	351.711
	=	0.83

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.

Tower Semiconductor Days Inventory Related Terms

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Tower Semiconductor (Tower Semiconductor) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

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.