Is there a publicly traded company that reports in constant currency and uses a set exchange rate or any set rate to calculate in constant currency?
In order to calculate in constant currency, most companies use the previous period's exchange rates. For example, to calculate year over year revenue in constant currency in Q4.15, Google used Q4.14 FX rates. Now for each month in Q4.14, the exchange rates fluctuate. This fluctuation in exchange rates does not allow for good multi year trend analysis nor does it show how the business is performing operationally.
If a company were to use a set rate for each month, that that would show better trend analysis and it would remove the effect of exchange rate fluctuation when trying to tell the business story.
Now is there a company that uses a set rate to calculate in constant currency?
In order to calculate in constant currency, most companies use the previous period's exchange rates. For example, to calculate year over year revenue in constant currency in Q4.15, Google used Q4.14 FX rates. Now for each month in Q4.14, the exchange rates fluctuate. This fluctuation in exchange rates does not allow for good multi year trend analysis nor does it show how the business is performing operationally.
If a company were to use a set rate for each month, that that would show better trend analysis and it would remove the effect of exchange rate fluctuation when trying to tell the business story.
Now is there a company that uses a set rate to calculate in constant currency?
