Learn a fault analysis case of corporate finance major, thank you!

Haha, this hen's laying eggs is also a mechanized production. Mechanical production needs raw materials, namely feed. Chickens are borrowed and the materials are produced by themselves. Products are given to 10 people every month, and 20 products are produced by himself, which means that his material conversion rate is lower than 66.66%. Financial expenses account for more than 33.33% of the total output value. This is not counting the profit. This is one aspect.

On the other hand, chickens will get old, machinery will depreciate, and 30 eggs will be laid this month. Will there be 30 eggs next month? The capacity of this machine will only go down, and the interest is still 10 eggs. On the day when the chicken doesn't lay eggs, the profit is not enough to buy a new chicken, and it is also a failure in the long run.

The third is risk. What if the chicken runs away and dies? If you don't produce, what about 10 eggs? It's like borrowing money to buy stocks and dying.