Financial Measure of the Performance The key components of asset turnover are related to the receivable turnover (ART);inventory turnover (INVT);and plant and equipment turnover(PPET). Sales revenue Cost ofgoods sold Sales revenue ART INVT= PPET Accounts receivable Inventories PP&E ■ In2009, ■ ART=19.45,(Collect its money 2.7 weeks) ■ INVT=8.74,(Inventory holds 5.95 weeks) ■ PPET=19,each dollar invested in property,plant and equipment supported about $19 of sales in 2009 ■ How about 2010? SEIEE AU406 9+ - SEIEE AU406  The key components of asset turnover are related to the receivable turnover (ART); inventory turnover (INVT); and plant and equipment turnover (PPET). 9 Financial Measure of the Performance  In 2009,  ART=19.45, (Collect its money 2.7 weeks)  INVT=8.74, (Inventory holds 5.95 weeks)  PPET=19, each dollar invested in property, plant and equipment supported about $19 of sales in 2009  How about 2010?