Raw Material Cost

If the inputs to a manufacturing process increase, then either the output price must increase or the companies margins will decreases. During an economic slowdown, it's difficult to increase the price of products. … "Raw Material Cost" has a significant impact, so an analyst should put more weight into it. "Raw Material Cost" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Raw Material Cost" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.