May 30, 2022
Exchange Rate and Inflation
Financial structure of BB is based on following realities;
Gross profit of the company is more or less 9%-10%.
Operational costs are significantly incurred in TRL. However, in midterm it is affected by volatility in exchange rates, which leads to inflation.
Capital structure of the company is made up of foreign currency loan, which are processed in TRL in accounting books, given by supplier/shareholders. When exchange rates surge, the loan also hikes up and it results in foreign exchange loss.
Whole these parameters work together in exchange rate surging. On the one hand company’s gross profit in TL is going up, on the other hand company’s operatinal cost increasing along with foreign exchange loss. In the end, the company is not able to get out of loss loop.
Exchange rate surging reduces commercial loss of the company but it is small proportion. with
What is supposed to do?
As a first suggestion, selling prices should be increased in EURO, if possible. İf it is not possible, raw materials are supposed to be purchased for cheaper. In this way gross profit of the company is going to be increased.
Saving operational costs, most part of which is TRL helps with increasing company’s profit. However, surging energy prices, rents and salaries restrict the company’s capability.
Bank loans should be converted into TRL and purchasing should be done in TL in order to avoid foreign exchange rate loss.
The text is actually a little bit technical. If you are into finance or accounting, you will understand better what I mean.
Exchange Rate and Inflation
FThe financial structure of BB is based on the following realities;
GThe gross profit of the company is more or less 9%-10%.
Operational costs are significantly incurred in TRL.
However, the in midterm it is affected by volatility in exchange rates, which leads to inflation.
CThe capital structure of the company is made up of foreign currency loans, which are processed in TRL in accounting books, given by suppliers/shareholders.
When exchange rates surge, the loan also hikes up and it results in foreign exchange loss.
Whoile these parameters work together in exchange rate surging.
On the one hand, the company’s gross profit in TL is going up, but on the other hand, the company’s operational cost is increasing along with foreign exchange loss.
You could also separate this into two sentences: "On the one hand, the company's gross profit in TL is going up. On the other hand, the company's operational cost is increasing along with foreign exchange loss."
In the end, the company is not able to get out of loss loop.
Exchange rate surging reduces the commercial loss of the company but it is small proportion.
with
What is it supposed to do?
As a first suggestion, selling prices should be increased in EURO, if possible.
İIf it is not possible, raw materials are supposed to be purchased for cheaper.
In this way the gross profit of the company is going to be increased.
Saving operational costs, most part of which is TRL, helps with increasing the company’s profit.
However, surging energy prices, rents and salaries restrict the company’s capability.
Bank loans should be converted into TRL and purchasing should be done in TL in order to avoid foreign exchange rate loss.
Feedback
Good job!
Whoile these parameters work together in exchange rate surging.
On the one hand company’s gross profit in TL is going up, on the other hand company’s operational cost increasing along with foreign exchange loss.
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Exchange Rate and Inflation This sentence has been marked as perfect! |
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Financial structure of BB is based on following realities;
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Gross profit of the company is more or less 9%-10%.
|
|
Operational costs are significantly incurred in TRL. This sentence has been marked as perfect! |
|
However, in midterm it is affected by volatility in exchange rates, which leads to inflation. However, the in midterm it is affected by volatility in exchange rates, which leads to inflation. |
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Capital structure of the company is made up of foreign currency loan, which are processed in TRL in accounting books, given by supplier/shareholders.
|
|
When exchange rates surge, the loan also hikes up and it results in foreign exchange loss. This sentence has been marked as perfect! |
|
Whole these parameters work together in exchange rate surging. Wh Wh |
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On the one hand company’s gross profit in TL is going up, on the other hand company’s operatinal cost increasing along with foreign exchange loss. On the one hand company’s gross profit in TL is going up, on the other hand company’s operational cost increasing along with foreign exchange loss. On the one hand, the company’s gross profit in TL is going up, but on the other hand, the company’s operational cost is increasing along with foreign exchange loss. You could also separate this into two sentences: "On the one hand, the company's gross profit in TL is going up. On the other hand, the company's operational cost is increasing along with foreign exchange loss." |
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In the end, the company is not able to get out of loss loop. This sentence has been marked as perfect! |
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Exchange rate surging reduces commercial loss of the company but it is small proportion. Exchange rate surging reduces the commercial loss of the company but it is small proportion. |
|
with
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What is supposed to do? What is it supposed to do? |
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As a first suggestion, selling prices should be increased in EURO, if possible. This sentence has been marked as perfect! |
|
İf it is not possible, raw materials are supposed to be purchased for cheaper.
|
|
In this way gross profit of the company is going to be increased. In this way the gross profit of the company is going to be increased. |
|
Saving operational costs, most part of which is TRL helps with increasing company’s profit. Saving operational costs, most |
|
However, surging energy prices, rents and salaries restrict the company’s capability. This sentence has been marked as perfect! |
|
Bank loans should be converted into TRL and purchasing should be done in TL in order to avoid foreign exchange rate loss. This sentence has been marked as perfect! |
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