Commodity Prices
Short definition
Commodity prices are international market prices of standard inputs — energy, metals, agri. They move variable cost, inventory cash and sometimes the selling price together.
Detailed explanation
USD commodities enter TRY cost times FX; the double shock (price × FX) breaks the 13-week. Contracts (take-or-pay, formula price) set pass-through.
A hedge carries basis: Brent is not your product. Inventory costing carries past commodity into today’s margin.
Why it matters for the CFO
An “operational” EBITDA improvement can be a commodity drop. The reverse erodes contribution when the price list lags.
How to read it
Which commodity is your basket? A headline index misleads. Days of inventory is the lag before the shock hits P&L.
Related calculators
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.