Volatile Commodity Prices

Volatile commodity prices increase the risk to the company, since a sudden change in commodity prices can hurt profits and increase the chances of bankruptcy. It also makes long-term forecast more difficult and long-term investments to meet demand more difficult. … "Volatile Commodity Prices" has a significant impact, so an analyst should put more weight into it. "Volatile Commodity Prices" will have a long-term negative impact on this entity, which subtracts from the entity's value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Volatile Commodity Prices" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.