Comment by maxerickson
11 days ago
Not entirely. Businesses don't try to grow things like buildings and inventory, they try to manage them at levels that make sense for their present and projected sales.
(So the same sort of mercenary treatment that employees get)
Inventory is part of working capital. Companies generally understand that they want to expand working capital.
Buildings are often leased and are therefore not capital at all.
Companies who pay attention to free cash flow will typically try to manage inventory and non-cash/equivalent working capital down, not up.