outputPrice = Consumer Price Index for All Urban Consumers: New Vehicles in U.S. City Average
inputPrice = Producer Price Index by Industry: New Car Dealers: New Vehicle Sales
outputPrice = Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
inputPrice = Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
outputPrice = Producer Price Index by Commodity: Machinery and Equipment: Miscellaneous Instruments
inputPrice = Producer Price Index by Commodity: Metals and Metal Products: Nonferrous Metals
Make your argument based on your analysis of the given charts.
Since late 2016 to early 2017 Comptus has mostly endured lackluster Profit Margins, with some brief periods of growth. When analyzing the data above, it is important to understand that when the Input price “Orange line” is decreasing, input price is still increasing but at a decreasing rate. That is valuable information when understanding that Comptus has struggled with input price on their main production source of metals. Before COVID-19 hit in 2019, Comptus was enjoying a very brief period of profitable margins with the input rate decreasing as low as -5.9% compared to the 2.1% Output price on machinery and equipment. That margin was short lived. When Covid hit and input prices soared to 36.5% compared to 1.0% Output Price. One can point to supply chain issues during Covid along with shipping ports delaying shipments and rising unemployment causing everything to get backed up. Construction materials prices soared through the pandemic with the like of metals, wood, and equipment prices going through the roof so this analysis is not surprising. Fortunately after the peak input price index in May of 2021 prices were increasing at a decreased rate throughout early 2022 when May hit the two were nearly even. with Input Prices at 10% and Output at 9.2%. This trend finally went into a positive direction when June price index numbers showed Comptus output price index exceeding its’ input prices; 9.6% compared to 6.6%. Important to not that input prices were still increasing but at a decreasing rate below that of the companies output index ratio. Prices for metals have decreased significantly since the its highest margins during the pandemics supply chain issues. As recently as August of this year, Input prices for metal are valued at -0.5% whereas output prices for machinery and equipment are valued at 9.3%; a much more favorable ratio for Comptus and their profit margins.