Cash flow statement
FX Effect on Cash
Shows cash and equivalents available with immediate or near-immediate liquidity in the cash-flow statement. Unlike the income statement, the focus is the cash movement or the reconciliation explaining why accounting profit differs from generated liquidity.
FX Effect on Cash
effectOfForexChangesOnCash · Cash flow statement
- Definition
- Shows cash and equivalents available with immediate or near-immediate liquidity in the cash-flow statement. Unlike the income statement, the focus is the cash movement or the reconciliation explaining why accounting profit differs from generated liquidity.
- Calculation
- Diferencia de conversion por tipo de cambio sobre saldos de cash en moneda extranjera.
- Uses
- Useful for separating accounting profit from real cash generation and tracking reinvestment, acquisitions, debt, dividends and buybacks. Especially important in mature businesses, cyclicals, roll-ups and high-capex companies. It can mislead through working-capital timing, irregular capex, refinancing or M&A. Cross-check net income, EBITDA, maintenance capex and net debt.
