Had an working capital interview questions that stumped me with a healthcare group. I tried to think through after but not fully understanding. Any explanations?

1) When would I want more inventory?

2) Is negative working capital bad?

3) Do I want negative working capital or positive working capital?

Thanks for any guidance!

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Posting as :
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You would want more inventory when your sales projection is much higher than your inventory turnover.

Negative working capital could indicate growth for a company so it’s not bad. It could be a positive sign for investors.

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That makes sense. I didn't think about sales vs turnover. Thank you!

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