FX Exposure Calculator

How do currency rate fluctuations impact your company's earnings? This calculator illustrates earnings volatility by measuring budget variance caused by currency rates in one sample business unit. Consider one of your company's subsidiaries that sells or buys in a foreign currency. Enter the estimated annual transaction amount and your budgeted exchange rate for the applicable currency pair. Click "Calculate" to see the monthly variance - favorable or (unfavorable) - between your budgeted amount and the month's average market value.

Remember this is only one currency exposure, at one of your subsidiaries. How many subsidiaries does your company have? In order to effectively measure your company's consolidated exposure, you need to aggregate all your subsidiaries' exposures and carefully net any naturally offsetting exposures. Successfully quantifying your currency exposures is the key first step in executing an effective hedging program that can reduce earnings volatility caused by currency. Contact us to see a demo of how Whitewater Analytics can help you quantify your company's currency exposure.

Exposure Calculator

Your subsidiary's monthly budget variance
in this period was as high as EUR

Estimated foreign currency EUR 12

Budget rate for EUR 12

Budgeted EUR 12

In one month a 5% unfavorable market move means EUR 12