Answered

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?

Answer :

Answer:

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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