July 2024 Currency Impact Report

A Quarterly Report Assessing the Impact of Foreign Exchange to North American and European Corporate Earnings

About the Report

The July 2024 Kyriba Currency Impact Report analyzes the reported effects of currencies to North American and European companies’ earnings during the second quarter of 2023. To obtain this information, Kyriba analyzed the earnings calls of 1,700 publicly traded North American and European (850/850) companies as part of a continued effort to provide insight into how foreign exchange impacts organizations. The size of European companies included in the current index was increased in Q2 2023 to 850. The companies included in this data set are large multinational firms doing business in more than one currency with at least 15% of their revenue coming from overseas.

Kyriba Currency Impact Report: Key Findings

• The collective quantified negative impact reported by both North American and European companies totaled $9.83 billion in Q1 2024, a 44.6% increase from Q4 2023.
• 11.5% of corporates studied (195/1700) quantified +/- impacts totaling $12.55 billion ($9.83 billion headwinds), ($2.72 billion tailwinds).
• The Argentinian peso and the US dollar were the currencies most mentioned as impactful by North American and European companies, respectively, while the Turkish lira was the most volatile currency.
• 177 North American and European companies reported currency headwinds in Q1 2024. Of those companies, 120 (67.8%) companies quantified their FX impacts.

Currency Impact on North American Corporate Earnings

North American companies reported a $8.38 billion impact in Q1 2024, 219% larger than the impact in Q4 2023.¹

The average earnings per share (EPS) impact reported by North American companies in Q1 2024 was $0.01, six times greater than the industry standard MBO of less than $0.01 EPS impact.

¹ Impacts are likely underestimates as most companies with currency headwinds generally do not report them.

The Argentinian peso was the most mentioned currency. The Chinese renminbi was the second most-mentioned, followed by the Mexican peso, the Japanese yen, and the euro. The Argentinian peso was the second most volatile currency while the Chinese renminbi was the third second most volatile currency weighted by GDP.

Percentage of North American Companies That Fielded Analyst Questions

In Q1 2024 earnings calls, 18% of North American companies that reported impacts fielded analyst questions.