The portion of invested capital tied up in inventory is not sufficient to judge a retailer. What we want to know/estimate is the retailer's return on invested capital (ROIC). A retailer with significant competitive advantages that can generate above-average ROIC for many years to come is a good business. If, on top of that, that retailer can be acquired at a sensible valuation in relation to such future ROICs, it would also be a good acquisition.