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30 July, 11:26

Valley Markets has an inventory turnover of 3.2 versus an industry average of 3.5 and a capital intensity ratio of 1.9 versus an industry average of 1.8. What can you determine about the efficiency of Valley Markets?

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  1. 30 July, 13:21
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    Valley Markets uses its assets less efficiently than the average firm in its industry.

    Explanation:

    Valley Markets inventory takes longer to sell and requires more total assets per dollar of sales than does its industry.
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