Raw Materials as percentage of COGS?
Hi, I am working on a model for a manufacturing company. I'm trying to test the sensitivity the price of raw materials has on COGS. Is there an effective way to estimate what percentage of COGS raw materials consists of? I've been through the filings and while they do provide breakdowns of the raw materials themselves, they do not contain the proportion of COGS. Thanks!
Assuming no hedging takes place I would sensitize COGS so that every x% change in the raw material causes an x% move in COGS. I would look at this relationship over time
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