Effect of Forex Changes on Cash

Effect of exchange rate changes on cash and cash equivalents.

Interpretation depends on context. Consider industry standards, company strategy, and other factors when evaluating this metric.

• 1Can be positive or negative; often small unless the company has significant foreign operations.
• 2Included in net change in cash; not part of operating, investing, or financing.
• 3Consider with revenue and asset mix by currency for FX exposure.

Typically a reconciling item at the bottom of the cash flow statement. Adds to or subtracts from net change in cash.

• Capital Expenditures (CAPEX)
• Investments in Property, Plant & Equipment
• Net Cash Flow from Operating Activities
• Net Cash Flow from Investing Activities
• Purchases of Investments